Idaho First Bank’s purchase by Austrian company approved

BAWAG Group, based in Vienna, Austria, announced on Nov. 1 that all regulatory approval had been given for its acquisition of Peak Bancorp, the parent company of Idaho First Bank. The deal is scheduled to close Nov. 30.

Shareholder equity of Peak Bancorp was just under $50 million as of Sept. 30, as reported by BAWAG. The purchase price is set for $65 million, which is in line with the original agreement.

Idaho First Bank, a state-chartered community bank, opened its first branch in McCall in 2005 by Greg Lovell, the president and chief executive officer at the time, and had 10 employees. Today, the bank has six branches throughout Idaho and one in Bend, Oregon.

“We are proud of the financial performance of Idaho First Bank since the transaction announcement, particularly proud of the performance during 2023, and excited about the opportunities this transaction provides our team, our customers and our communities,” said Mark Miller, Peak Bancorp’s chairman of the board.

He added that shareholders will continue to be invested in the institution.

“Additionally, shareholders representing nearly one-third of Peak Bancorp ownership have communicated an intent to reinvest after-tax net proceeds from the sale of the bank into BAWAG stock as we are excited about the many growth opportunities ahead for BAWAG Group,” Miller said.

BAWAG Group is a publicly listed holding company, which serves 2.1 million retail, small business, corporate, real estate and public sector customers in Austria, Germany, Switzerland, Netherlands, Western Europe and the U.S. Since its inception, the company has made 11 acquisitions.

The acquisition of Idaho First Bank allows BAWAG to take advantage of more growth opportunities throughout the U.S., the company said in a statement.

“We are excited about the acquisition of Peak Bancorp and the many opportunities this presents for the group,” said Anas Abuzaakouk, chief executive officer of BAWAG Group. “Despite the various challenges faced by the U.S. banking sector this year, we have been pleased with the performance of Idaho First Bank, which reflects the financial strength and resilience of the franchise as well as the quality of leadership and the broader team.”

He went on to say that the purchase will allow the company to “drive organic growth in Idaho” and the rest of the nation.

“We look forward to welcoming the Idaho First Bank team into the BAWAG family and continuing to grow the franchise,” Abuzaakouk said.