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First Interstate shuffles downtown Boise branches

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The ghostly image of the Idaho Independent Bank is still visible under the First Interstate logo. Photo by Sharon Fisher

In the continuing process of downtown Boise bank musical chairs, First Interstate Bank is moving its downtown branch to Pioneer Crossing in January.

First Interstate had already decided to move its downtown Boise branch from 9th and Idaho Streets, in the former First Security Bank building, to the Pioneer Crossing development at Myrtle and 13th Streets, and made plans to shut down that branch.

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Jeff Huhn

“It’s part of the path of progress for downtown,” said Jeff Huhn, Boise metro market president, who added First Interstate is financing the building.

The move gives the bank a more modern building, with lighter colors and a more open layout that allows for increased collaboration, he said. In addition, it has better parking and a better experience for both employees and customers, he said.

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Lorrie Asker

“Parking is a challenge in downtown, and it affords them nice, covered parking,” said Lorrie Asker, regional president for Idaho and eastern Washington.

First Interstate was the first tenant announced for the five-story, 120,000-square-foot office building. Rob Perez, regional president at the time, said the bank would occupy about 15,000 square feet on the second floor along with a ground floor bank branch.

The new branch will also feature more staff and services, particularly by adding a wealth management staffer to the Pioneer Crossing office, Huhn said.

Musical branches

In the meantime, in October 2018, First Interstate announced it was acquiring Idaho Independent Bank, based in Coeur d’Alene, as well as Community 1st Bank, based in Post Falls. Idaho Independent Bank had its own branch in downtown Boise on the ground floor of 401 Front St., plus office space on the second floor. Those acquisitions were finalized on April 8.

The 9th & Idaho St. branch was already shut down, but the Pioneer Crossing one wasn’t ready yet, so First Interstate moved its downtown Boise branch to the Idaho Independent Bank location. (Meanwhile, Mountain West Bank moved its branch from the Hoff Building at 8th and Bannock to the 9th & Idaho St. location.)

Now that the Pioneer Crossing branch is done, First Interstate has scheduled the move of both the branch and all of its staffers in its second-floor offices to the new facility, where it is leasing part of the ground floor and part of the second floor, for Jan. 13, Huhn said. It has also scheduled the closing of the 401 Front St. branch.

“This branch will consolidate into that branch on Feb. 17,” he said.

The bank’s 9th and Jefferson branch remains unchanged.

When First Interstate announced the acquisition of the two banks, President and CEO Kevin Riley had indicated there was some overlap, particularly in Boise and Coeur d’Alene and had predicted then some branches would be closed.

But when all is said and done, not a lot will actually be changing, Huhn said.

“We’ll still have two branches in Boise,” he said. “We had one before (the acquisition). Now we’ll have two.”

 Renovating branches

In addition to building the new branch, First Interstate is also investing in remodeling some of its other existing branches in the Treasure Valley as well, Huhn said. That includes a remodel of the second floor of the West Overland branch in Boise, a remodel of the Nampa branch and some work on the branches in Garden City and the other downtown branch at 9th and Jefferson Streets, he said.

The renovation will primarily consist of painting and redecoration rather than a major reconstruction, Huhn said.

“The second floor of West Overland was a very dark space,” he said. “We lightened it up and painted the walls. We’re not moving walls.”

What will happen to the 401 Front St. space, which First Interstate owns, and on which the ghostly lettering of “Idaho Independent Bank” is still visible, is unclear at this point.

“I’m guessing we’re going to put it on the market,” Huhn said.

First Interstate Bank appoints new Idaho regional president

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First Interstate Bank entered the Idaho market in 2017 with the purchase of Bank of the Cascades, including this Kuna branch. Photo by Sharon Fisher

First Interstate Bank has hired a new regional president for Idaho and eastern Washington.

Lorrie Asker, who started on Aug. 15, previously worked for First Foundation Bank in Irvine, California, in a regional role. A long-time Idaho resident, she has been living in Boise for the past year and resided in North Idaho before that, commuting to California regularly.

“I’m really excited about being back here in Idaho, joining an organization that shares my values for community and teamwork,” she said.

Asker replaces Kurt Gustavel, former CEO of Idaho Independent Bank, who was named to the position in October 2018 when First Interstate acquired Idaho Independent Bank.

“After leading our Idaho markets through the transition as Regional President, Kurt resigned his position at First Interstate in June 2019,” said Sara Becker, vice president and marketing manager for First Interstate. “It is my understanding that Kurt decided to take a step back to make way for new leadership as a fresh chapter emerges for First Interstate.”

Gustavel replaced longtime First Interstate executive Rob Perez, who announced his retirement for the first half of 2019 at the October acquisition.

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Lorrie Asker

In the role, Asker oversees 36 branches, six commercial lending teams and 363 employees in Idaho and eastern Washington, as well as service providers and affiliated deposit services. The bank has three markets in the region: North Idaho, south Idaho and eastern Washington.

“I’m responsible for our strategic presence in these markets, making sure we’re contributing value to the bank and our communities, and providing a good and safe environment for our employees,” she said.

Asker said First Interstate doesn’t have any specific plans for further expansion in Idaho.

“The state of Idaho, in particular, is seeing a lot of growth,” she said. “We’re constantly evolving and looking for ways to serve the communities across all the bank’s footprints. We’re here to serve and grow with the community. Strategically, the bank is looking to grow. I can’t speculate on where we’ll find opportunities for growth.”

Parent company First Interstate BancSystem has acquired a total of four Idaho banks. The Billings, Montana-based company announced in October 2018 that it had acquired Idaho Independent Bank, based in Coeur d’Alene, and Community 1st Bank, based in Post Falls. In mid-August 2018, the company closed on its April 2018 acquisition of Northwest Bancorporation Inc., which operated in Washington and Idaho as Inland Northwest Bank. Inland Northwest had three branches in Idaho, two in Coeur d’Alene and one in Spirit Lake.

First Interstate entered Idaho in May 2017 through another acquisition, Bank of the Cascades. Before the October acquisitions, it had about 120 branches in Idaho, Montana, Oregon, South Dakota, Washington and Wyoming.

However, the bank may be done with acquisitions for a while, she indicated. “We’re looking for growing organically.”

Asker’s office is based in the First Interstate office in Boise at 401 West Front Street, but she will travel to the various regions.

“I’m visiting all our offices and meeting our team members in my first 75 days here,” she said. “For my first 90 days, I’m just observing and understanding how things are working, and looking for opportunities to improve and to grow. I don’t have any immediate plans to change anything.”

Like many banks, First Interstate is working on technology to look for ways to better serve its clients, Asker said.

“My job is to remove obstacles and help them execute on all the tasks,” she said. “We’re working as an institution on projects and initiatives to accomplish those goals.”

The year in review: Banking

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First Interstate Bank entered the Idaho market in 2017 with the purchase of Bank of the Cascades, including this Kuna branch. Photo by Sharon Fisher

2018 was a pretty darn good year for banking.

“Idaho-headquartered banks registered a strong increase in earnings, with a 39 basis point rise in the average return on assets ratio, compared with one year prior,” said Mary Hughes, deputy director for the Idaho Department of Finance. “Compared with banks nationwide, Idaho-headquartered banks have higher average capital, a stronger net interest margin, lower concurrent loans and net charge-off ratios, and more robust asset, loan, and deposit growth rates. These are, in part, a reflection on Idaho’s strong economy.”

That strong economy helped Idaho grow, almost too fast. “Many people have moved here from other states to take advantage of the job market, housing market and way of life,” said Brian Berrett, chief financial officer for Idaho Central Credit Union (ICCU).

That wasn’t always good news. “The housing market in Idaho continued to increase and even caused some housing shortages in certain markets,” he said. “Houses in the middle to lower price ranges sold very quickly, while houses on the upper end of prices haven’t been moving as fast.”

That said, it was a pretty darn good year for banks nationwide, too. Aside from the strong economy, there was S.2155, the Economic Growth, Regulatory Relief and Consumer Protection Act, which Congress passed in May to reduce the amount of regulation required from the federal government for smaller banks. That legislation was sponsored by Sen. Mike Crapo, R-Idaho, chair of the Banking Committee.

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Idaho Sen. Mike Crapo

“The 115th Congress was incredibly productive for the Banking Committee,” Crapo said. “We ushered dozens of bills through the committee and into law, one of which was the Economic Growth, Regulatory Relief and Consumer Protection Act. We also passed important sanctions legislation, and legislation to protect our national security interests.”

In fact, the national news was so good that interest rates went up. “The Federal Reserve aggressively raised rates that impacted short-term rates,” Barrett said.

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Dave Glaser

But even that provided an opportunity for some banking sectors, such as community development financial institutions.

“Because of uncertainty in the economy and interest rate pressures, we’re seeing more banks tightening their credit,” said Dave Glaser, president of MoFi, a CDFI that covers Idaho, Montana and Wyoming. “MoFi has seen a steady increase in its small business lending activity in the Treasure Valley over the last four years. In 2018, we will lend more money to Idaho small business than in any other state we serve. The flexible, responsible capital we provide is more important than ever to ensure a sustainable, inclusive economy in Idaho.”

Idaho’s success in banking led to growth in the industry, whether through acquisition, as on the bank side, or by organic growth, as on the credit union side.

First Interstate Bank – which just entered Idaho though acquisition in 2017, when it acquired Bank of the Cascades – apparently decided it liked the place, and made three more acquisitions in 2018: Inland Northwest Bank in April, followed by Idaho Independent Bank and Community 1st Bank in October.

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Mary Hughes

Hughes attributed these moves to the strength of Idaho’s banking industry. “These are a reason why out-of-state banks want to expand in Idaho, and our banks are attractive targets for acquisition,” she said.

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Kevin Riley

Kevin Riley, president and CEO of First Interstate BancSystem, Inc., said one of the highlights of 2018 was his company’s expansion into Idaho markets.

“Culturally, it felt like a natural extension to our pre-existing footprint, a network of community banks committed to giving back to the places we call home while delivering exceptional customer service,” he said.

Credit unions – which are used by more than half of Idahoans, one of the largest proportions in the country – also grew. Nowhere was this more true than for ICCU, the state’s largest. It announced a variety of new and renovated branches, as well as an Innovation Center in Rexburg to demonstrate new banking technology, a new data center in Chubbuck, and what will be a new regional mortgage and call center in Meridian, where the company bought a more than 50-acre parcel along Highway 84.

“Nearly one million Idahoans belong to a credit union – 55 percent of the population,” said Lynn Heider, vice president of public relations for the Northwest Credit Union Association (NWCUA), which represents Idaho credit unions. “We expect that when new economic data is released early next year, it will indicate that membership has grown as more consumers become aware of the benefits that not-for-profit cooperative credit unions can deliver to them.”

For example, as of September, Idahoans saved $22.4 million on interest from loans and credit cards, and earned $27.7 million in account interest, compared with what they would have spent or earned with banks, according to a report from the Credit Union National Association.

Nampa will expand city hall into First Interstate Bank building

Nampa is leasing, then buying the First Interstate Bank building. Photo courtesy of city of Nampa.

The city of Nampa will move several city departments into the First Interstate Bank building at 500 12th Ave. S. as Idaho’s third largest city will now have two principal municipal offices.

The Nampa City Council entered into an agreement Oct. 2 with First Interstate to first lease 8,000 square feet in the historic Home Federal Bank building, and ultimately close June 30 on the $2.5 million purchase of the entire 34,500 square feet.

The city engineering and geographic information system (GIS) departments will be the first to move into the bank space, likely in October. The building department, planning and zoning, public works, economic development and code compliance eventually are expected to relocate into the bank, Bowman said.

“We are spread out,” city spokeswoman Amy Bowman said. “We are looking to consolidate departments. The building inspector is in the basement of the Family Justice Center. Code Compliance is in Fire Station 4.”

Economic development has a street-front office downtown.

First Interstate will remain in the building for now, Bowman said.

Home Federal Bank occupied the building from 1920 to 2014 until it was acquired by Bank of the Cascades, which itself was acquired in 2017 by First Interstate Bank.

First Interstate buys Idaho Independent, Community 1st banks

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First Interstate Bank entered the Idaho market in 2017 with the purchase of Bank of the Cascades, including this Kuna branch. Photo by Sharon Fisher.

Continuing its plan to dominate the Northwest, First Interstate BancSystem has acquired not one but two Idaho banks, in addition to the two it had previously acquired.

The Billings, Montana-based company announced Oct. 11 that it had acquired Idaho Independent Bank, based in Coeur d’Alene, and Community 1st Bank, based in Post Falls. In mid-August, the company closed on its April acquisition of Northwest Bancorporation Inc., which operated in Washington and Idaho as Inland Northwest Bank. Inland Northwest has three branches in Idaho, two in Coeur d’Alene and one in Spirit Lake. First Interstate entered Idaho in May 2017 through another acquisition, Bank of the Cascades. Before the new acquisitions, it had about 120 branches in Idaho, Montana, Oregon, South Dakota, Washington and Wyoming. The Idaho region, overseen from Boise, had 14 branches from Mountain Home to Fruitland with a total of 140 employees.

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Kevin Riley

“When companies decide to merge, often their first consideration is whether the strategy and culture of the acquired company aligns with their own,” said Kevin Riley, president and CEO of First Interstate. “In this case, we are confident our individual strategies and cultures align well. In addition, the geographically complementary locations of Idaho Independent Bank, Community 1st Bank, and existing First Interstate and Inland Northwest Bank branches offer a tremendous opportunity to grow and better serve our clients and communities.”

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Kurt Gustavel

Idaho Independent Bank, whose CEO, Kurt Gustavel, was appointed on Jan. 1 after being named president when he was just 35, has about 200 employees and 11 branches in Boise, Caldwell, Coeur d’Alene, Hayden, Meridian, Mountain Home, Nampa, Star and Sun Valley/Ketchum. It was established in 1993 as an Idaho state-chartered commercial bank. Community 1st Bank, founded in just 2007 in Post Falls as the first new community bank in that city in more than a century, now has three branches in Post Falls and Coeur d’Alene. That gives First Interstate a total of 28 branches in Idaho.

However, with the new acquisitions, there is overlap, particularly in Boise and Coeur d’Alene, Riley said.

“Some branches will undoubtedly be closed,” he said. He would not say how many, but said all three banks have implemented a hiring freeze in those markets to ensure as many existing employees as possible could remain with the company.

Both of the acquired banks, like First Interstate and its previous two acquisitions, are public. First Interstate paid $181.3 million for Idaho Independent and $21.5 million for Community 1st in all-stock transactions based on current stock prices. All of the acquisitions have been approved unanimously by their respective boards.

Idaho Independent has approximately $725 million in assets, $362 million in loans, $610 million in deposits, and $69 million in shareholders’ equity as of June 30. Community 1st has $130 million in assets, $78 million in loans, $116 million in deposits, and $13 million in shareholders’ equity as of June 30. Pro forma including both acquisitions, First Interstate will have approximately $14.1 billion in total assets, $8.9 billion in total loans, $11.4 billion in total deposits, and $1.8 billion in shareholders’ equity.

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David Bobbitt

Gustavel will serve as regional president for Idaho and Eastern Washington. David Bobbitt, chairman and CEO of Community 1st, intends to retire, First Interstate said.  Rob Perez, current regional president for First Interstate, will be retiring in the first half of 2019, according to Sara Becker, vice president and marketing manager.

Other than the new Ketchum/Sun Valley branches, much of Idaho east of Mountain Home remains without a First Interstate branch.

“While we find these regions very attractive, we have no immediate plans to move into these areas at this time, although we may consider it at some point in the future,” Riley said.

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Trent Wright

“Because of the increased capital for loans and the ability to offer new services, Idahoans stand to benefit as a result of this merger,” said Trent Wright, president of the Idaho Bankers Association in Boise. “Bank merger activity is a sign of a competitive industry. To meet or beat the competition, some banks choose to join other institutions that either offer more products or serve a different market.”

At the same time, the merger could create opportunities for other community banks to differentiate themselves from the larger bank, he added.

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Rob Perez

First Interstate’s move wasn’t surprising. Riley said during the earnings call on April 26 where the Inland Northwest deal was announced that it would consider other deals – likely starting at $1 billion and focused on filling in the six states in which it already operates, as opposed to entering other markets such as California.

“I anticipate continued acquisitions (of other banks),” Perez added in June. “I anticipate additional organic growth.”

Banking experts had suggested that the passage of S.2155 – the Economic Growth, Regulatory Relief and Consumer Protection Act, which was signed into law by President Donald Trump on May 24 – might encourage smaller banks to merge with or acquire each other, because even merged, they will still fall below that new threshold for compliance with large bank requirements. However, Riley said S.2155 wasn’t a factor in the acquisitions.

The company will announce earnings for the third quarter, which ended Sept. 30, on Oct. 25. Analyst estimates range from $0.70 to $0.84. In its previous quarter, it reported net income of $41.7 million, or $0.74 per share, compared with net income of $36.7 million, or $0.65 per share, for the first quarter of 2018, and $21.8 million, or $0.45 per share, for the second quarter of 2017.

This article was updated on October 12 to include Rob Perez’ status.

Will more Idaho banks merge? Maybe.

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First Interstate Bank entered the Idaho market in 2017 with the purchase of Bank of the Cascades, and expanded it in April with the acquisition of Inland Northwest Bank. Officials expect more acquisitions. File photo.

While a change in banking law is expected to spawn more mergers and acquisitions, they aren’t likely to be more prevalent in Idaho – at least, because of that.

Congress passed S.2155, the Economic Growth, Regulatory Relief and Consumer Protection Act, which was signed into law by President Donald Trump on May 24. It was intended to reduce the compliance requirements of smaller banks by raising the ceiling for banks needing to comply with them.

Consequently, some experts believe the raised ceiling will encourage smaller banks to merge with or acquire each other, because even merged, they will still fall below that new threshold. The result could be fewer community banks overall.

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Trent Wright

But that isn’t likely to happen in Idaho, said Trent Wright, president and CEO of the Idaho Bankers Association. “The IBA does not believe that in Idaho the provisions laid out in S.2155 will have an effect of increased mergers or acquisitions in the near future,” he said. “Most Idaho community bank mergers would still fall below the former arbitrary $50 billion [systematically important financial institution] designation.” In addition, many of the rule changes required under the law have not yet happened, he said.

However, there is one possible exception: First Interstate BancSystem, a Billings, Montana, bank that in mid-August closed on its April acquisition of Northwest Bancorporation Inc., which operated in Washington and Idaho as Inland Northwest Bank. Inland Northwest has three branches in Idaho, two in Coeur d’Alene and one in Spirit Lake. First Interstate entered Idaho in May 2017 through another acquisition, Bank of the Cascades. Altogether, it now has about 120 branches in Idaho, Montana, Oregon, South Dakota, Washington and Wyoming. The Idaho region overseen from Boise has 14 branches from Mountain Home to Fruitland with a total of 140 employees.

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Kevin Riley

While the company hasn’t announced any additional acquisitions since then, Kevin Riley, president and CEO of First Interstate, said during the earnings call on April 26 where the Inland Northwest deal was announced that it would consider other deals – likely starting at $1 billion and focused on filling in the six states in which it already operates, as opposed to entering other markets such as California.

Riley didn’t offer any specifics about what banks First Interstate might be eyeing. But with its acquisition of Inland Northwest, First Interstate now has branches in North Idaho, but no branches in the expanse of eastern Idaho between Mountain Home and Montana.

“We aren’t focused on growth simply for growth’s sake,” Riley said. “Instead, we look for prospects that will make us a stronger, better company.  It’s important to us that our prospects align with us culturally. In addition, we look at a number of other factors. Do they have a strong core deposit base? What is the mix of their loan portfolio? And, of course, does the opportunity make sense economically, and will it enhance the overall value to our shareholders?”

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Rob Perez

“I anticipate continued acquisitions [of other banks],” regional president Rob Perez said in June. “I anticipate additional organic growth.”

The Idaho regional headquarters for First Interstate Bank is scheduled to move 35 staffers into the Pioneer Crossing office building under construction at Myrtle and 13th streets in downtown Boise, expected to be completed by summer 2019. Currently headquartered with 25 people in the Plaza 121 tower at Ninth and Idaho streets that Farmers & Merchants Bank occupied, First Interstate has outgrown that space. Bank of the Cascades acquired Farmers & Merchants in 2005, before it was acquired by First Interstate.

Analysts expect the company on Oct. 29 to announce earnings for the third quarter, which ends Sept. 30, ranging from $0.70 to $0.84. In its previous quarter, it reported net income of $41.7 million, or $0.74 per share, compared with net income of $36.7 million, or $0.65 per share, for the first quarter of 2018, and $21.8 million, or $0.45 per share, for the second quarter of 2017.

First Interstate Bank will move to Pioneer Crossing

First Interstate Bank will leave Plaza 121 at Ninth and Idaho streets. Photo by Teya Vitu.

The Idaho regional headquarters for First Interstate Bank will move into the Pioneer Crossing office building that just started construction at Myrtle and 13th streets in downtown Boise.

First Interstate is the first tenant announced for the five-story, 120,000-square-foot office building scheduled to open in summer 2019. First Interstate will occupy about 15,000 square feet on the second floor along with a ground floor bank branch, regional President Rob Perez said.

Pioneer Crossing developer Gardner Company/Ball Ventures anticipates announcing a second tenant for the office building sometime in July, said David Wali, Gardner’s executive vice president.

Also in July, Pioneer Crossing’s other major tenants are expected to open with the 150-room Hilton Garden Inn at Front and 13th streets and Panera Bread at Myrtle and 11th streets.

An 850-space garage has been open to the public since early April at Front and 11th streets. The garage also has the offices of the Boise Metro Chamber of Commerce, Boise Valley Economic Partnership and Boise Convention & Visitors Bureau.

Rob Perez

First Interstate Bank has outgrown its 8,500 square feet in the Plaza 121 tower at Ninth and Idaho streets that the bank, Bank of Cascades and Farmers & Merchants Bank have occupied since 2006. Bank of Cascades later acquired F&M and in May 2017 First Interstate acquired Bank of the Cascades.

The Billings, Montana, bank has about 120 branches in Idaho, Montana, Oregon, South Dakota, Washington, and Wyoming. The Idaho region overseen from Boise has 14 branches from Mountain Home to Fruitland with a total of 140 employees.

“I anticipate continued acquisitions (of other banks),” Perez said. “I anticipate additional organic growth.”

First Interstate has about 25 employees at its Plaza 121 office and expects to open at Pioneer Crossing with 35 employees, he said.

“We have outgrown this space,” he said.

When Perez joined Bank of Cascades just over two years ago, seven other employees from his former bank followed him. The commercial banking office has moved from Overland and Eagle to Plaza 121 since First Interstate took over.

Perez said First Interstate also wants to add new services to the Idaho division such as wealth management and payment services, both of which will add more people to the administrative office. He also envisions moving some staff from branches to Pioneer Crossing.

Perez said Pioneer Crossing was chosen for the new First Interstate office because many downtown towers with sufficient space already have bank offices and lease exclusivity that bars other banks from moving in.

“That makes our options very limited,” he said. “The beauty about Pioneer Crossing is the parking garage is next door.”

He said the bank’s visibility at the inbound Connector is valuable and the location is still close to the downtown core, a block away from JUMP and the J.R. Simplot Co. corporate headquarters.

“The core is expanding,” Perez noted. “Pioneer Crossing will be in the core soon.”

First Interstate buys Inland Northwest Bank

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First Interstate Bank, in Kuna. Photo by Sharon Fisher.

In an effort to expand its Northwest presence, First Interstate BancSystem has announced its intention to purchase Northwest Bancorporation Inc, which operates in Washington and Idaho as Inland Northwest Bank. Inland Northwest has three branches in Idaho, two in Coeur d’Alene and one in Spirit Lake.

“Since entering the Pacific Northwest, we have developed a great appreciation for these markets, and had a strong desire to increase our franchise in this region,” Kevin Riley, president and CEO of First Interstate, said on an investors’ call. Based in Spokane, Inland Northwest is a community bank with 20 offices across Washington, Idaho, and Oregon, while First Interstate is based in Billings, Montana. “It fills in our footprint in the Pacific Northwest,” he said, including enhancing its presence in Portland, and entering the high-growth markets of Spokane and Coeur d’Alene, particularly with the aerospace industry in Spokane, he said. The bank intends to continue operating all 20 of the existing offices, though not all the executives will make the move, Riley said.

The purchase is an all-stock transaction valued at approximately $160.9 million in aggregate, or $21.03 per share, the company said.

INB, a state-chartered community bank, currently has $826.8 million of assets, $669.0 million in loans, $721.0 million in deposits and $81.7 million in shareholders’ equity. After completion of the acquisition, First Interstate will have approximately $13.1 billion in total assets, $8.3 billion in total loans, $10.7 billion in total deposits, $1.5 billion in shareholders’ equity and 146 banking offices, the company said. First Interstate and Northwest expect to close the transaction late in the third or early in the fourth quarter of 2018, after satisfaction of customary closing conditions, including regulatory approvals and the approval of the Northwest shareholders, the company said.

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Kevin Riley

First Interstate might not be done acquiring, either. “There’s a lot of banks for sale out there,” Riley said. However, it has no plans to move into California and in general plans to stay within the six Northwest states in which it already operates, he said.

Riley, who also presented quarterly results, noted that the company earned 0.65 cents per quarter, a 27 percent increase, even with merger and severance impacts of 5 cents per share. He credited this growth to the 2017 acquisition of Cascade Bancorp, which operated as Bank of the Cascades, as well as the change in tax rates.

First Interstate purchased Bank of the Cascades in November 2016 for $589 million. It operates about a dozen branches in Idaho.