The company has a long history of growth and development, with its roots dating back to 1871.
First Interstate Bancorp has made significant strides in expanding its presence in the banking industry, with a strong focus on Montana and the surrounding region.
One notable example of this growth is the acquisition of Western State Bank in 2015, which added 16 branches to First Interstate Bancorp's network.
This strategic move has enabled the company to increase its market share and better serve its customers in the region.
Recent Developments
First Interstate Bancorp has made significant strides in recent years, expanding its presence in the market through strategic acquisitions.
In 2020, the company acquired Glacier Bank, a move that further solidified its position in the banking industry.
The acquisition of Glacier Bank added over $4 billion in assets to First Interstate Bancorp's portfolio.
As a result of the acquisition, First Interstate Bancorp's total assets grew to over $14 billion.
The company's focus on growth and expansion has led to increased revenue and profitability.
First Interstate Bancorp's commitment to innovation has also led to the implementation of new technologies and services.
Insight
First Interstate's acquisition of Great Western marks a significant milestone for the bank, making it the largest deal in its history.
The combined bank will have over $32 billion in assets, $18.4 billion in loans, and $27.1 billion in deposits, making it roughly the 63rd-largest bank in the U.S.
First Interstate's CEO, Kevin Riley, called the acquisition "a transformative moment" and highlighted the bank's focus on community banking, customer service, and relationship building.
Great Western's CEO, Mark Borrecco, expects the combined entity to offer customers access to additional branch locations and new products and services, providing new growth opportunities for employees and delivering additional returns to shareholders.
The deal will give First Interstate access to eight new states, including Arizona, Colorado, Kansas, Missouri, Nebraska, Iowa, Minnesota, and North Dakota.
Great Western shareholders will receive a 24.7% premium on their shares, with 0.8425 shares of First Interstate stock for each Great Western share they own.
Five directors from Great Western will join First Interstate's board of directors once the deal closes, at which point Great Western shareholders will own 43% of the combined company.
Frequently Asked Questions
What bank took over the First Interstate Bank?
First Interstate Bank was not directly acquired by Wells Fargo in 1996, but rather the First Interstate Bancorp was acquired, allowing the Montana organization to retain the First Interstate name and logo. Wells Fargo did not acquire First Interstate Bank, but rather the parent company, First Interstate Bancorp.
Did the First Interstate Bank become Wells Fargo?
No, First Interstate Bank did not become Wells Fargo, as it was taken over by Wells Fargo in 1996. However, the First Interstate name and logo continue to be used by First Interstate BancSystem under a franchise agreement.
Sources
- https://en.wikipedia.org/wiki/First_Interstate_Bancorp
- https://en.wikipedia.org/wiki/First_Interstate_BancSystem
- https://idahobusinessreview.com/2018/06/13/first-interstate-bank-will-move-to-pioneer-crossing/
- https://www.americanbanker.com/news/first-interstate-to-acquire-levy-bancorp-in-stock-deal-valued-at-865-million
- https://www.bankingdive.com/news/first-interstate-to-buy-great-western-bank-in-2b-all-stock-deal/606778/
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