A Billings, Mont. bank has acquired Bank of the Cascades for $589 million worth of cash and stock.
First Interstate Bank will now own 131 banking offices across South Dakota, Wyoming, Montana, Idaho, Oregon and Washington.
Bank of the Cascades is based in Bend, Ore. and has 50 branches in Idaho, Washington and Oregon including 13 in the Idaho section of the Treasure Valley. It manages $3.2 billion in total assets.
First Interstate Bank was interested in Bank of the Cascades foothold in Boise, Bend, Portland, Ore. and Seattle, said Kevin Riley, president of First Interstate. The acquisition was announced Nov. 17.
“Cascade is the largest bank operating in Bend and the largest community bank operating in Boise and these are both markets we have been looking at for a long time,” Riley said. “Cascade also has a relatively new presence in Seattle and Portland, which are two of the fastest-growing cities in the country and we expect to benefit from that continued strong growth.”
Bank of the Cascades has about $500 million out in loans in Portland and Seattle, Riley said.
The deal will not be final until the third quarter of 2017. Bank of the Cascades will continue to operate under its name for now, but First Interstate will work to bring all branches under the First Interstate Bank brand before the merger is finished, Riley said.
Bank of Cascades will retain most of its employees and leadership. The bank was interested in being acquired because First Interstate has wealth management and lending products that Bank of Cascades hasn’t been able to offer in the past, said Chip Reeves, president of Bank of Cascades.
Two members of the Bank of Cascades board of directors will join the First Interstate Bank board of directors.
First Interstate Bank will now manage $12.1 billion in total assets, $10.1 billion in total deposits and $7.6 billion in total loans.