Flathead Bank acquired by First Interstate

First Interstate Bank on Wednesday announced it is buying Flathead Bank for $34.2 million in cash.

The transaction is expected to close in the third quarter of 2016. After the acquisition is complete, Flathead Bank locations will become branches of First Interstate Bank.

Flathead Bank, based in Bigfork, has $231.6 million in assets and seven locations including Kalispell and Lakeside. There are branches in Belgrade and Ennis operating under the name Valley Bank and another in Cut Bank under the name Bank of Glacier County.

“Flathead Bank is a locally owned banking organization that shares our corporate values and emphasis on community banking and community reinvestment,” First Interstate President and Chief Executive Officer Kevin Riley said in a news release. “Bringing our two companies together gives us the opportunity to expand our statewide market in Montana and provides us with a solid presence in the Gallatin and Flathead markets. We’re confident this acquisition will create long-term value for both companies, our customers, our employees, our communities and our shareholders.”

Flathead Bank Chairman Larry Jochim said First Interstate Bank is a respected Montana company fit for taking over the community members of Flathead Bank.

“Flathead Bank is very appreciative of the community support it has received over the past 45 years in Bigfork, Lakeside, Kalispell, Cut Bank, Belgrade and Ennis. Now, we are looking forward to becoming part of the First Interstate family,” Jochim said.

Jochim said the acquisition may provide customers with new banking products, increased lending limits and convenient statewide access to banking services.

Flathead Bank was founded by a group of local businessmen in 1971 to provide the residents of the east shore of Flathead Lake with a hometown bank.

First Interstate, headquartered in Billings, has 20 locations statewide with additional banks in Wyoming and South Dakota. First Interstate has $8.7 billion in assets.

For more information on First Interstate Bank, visit www.firstinterstatebank.com.

Reporter Seaborn Larson may be reached at 758-4441 or by email at slarson@dailyinterlake.com.