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 President and Chief Executive Officers John Hanson said customers should benefit from the acquisition.

“The potential is for enhancements in both commercial and consumer offerings,” Hanson said in an email. “Commercial customers will enjoy larger loan limits and access to greater capital markets. Consumers will enjoy an enlarged ATM network, bank issued credit cards will simply customer’s lives and access to service through 90 branches will be appreciated.”

Hanson said it’s still unknown how job consolidation will play out after the acquisition is complete, but he expects the decision to be made by the end of summer.

“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.

Flathead Bank was founded by A.R. Appelgren in 1971, according to his son, Brent Appelgren, to provide the residents of the east shore of Flathead Lake with a hometown bank. A group of investors helped Appelgren get the bank off the ground.

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.