First Interstate, Great Western banks merge

First Interstate BancSystem Inc., parent company of First Interstate Bank, and Great Western Bancorp Inc., parent company of Great Western Bank, this week announced they have entered into an agreement under which the companies will combine in an all‐stock transaction.

The agreement will expand First Interstate’s footprint Into eight additional states.

Under the terms of the agreement, which was unanimously approved by both companies’ Boards of Directors, Great Western Bank will merge into First Interstate, and the combined holding company and bank will operate under the First Interstate name and brand, with the company’s headquarters remaining in Billings.

First Interstate has branch banks in Kalispell, Whitefish, Bigfork and Polson.

First Interstate will maintain a strong presence in Great Western Bank’s headquarters of Sioux Falls, South Dakota, according to a press release.

The combined company leverages the strengths of both organizations, creating a diversified, community-focused banking franchise. Once the conversion is complete, First Interstate will be one of the region’s largest financial institutions, with over $32 billion in assets and more than 300 branches across 14 states.

“This is a transformative moment for our 53-year-old company,” First Interstate President and CEO Kevin Riley said in a prepared statement. “The strategic and cultural alignment between our organizations is what makes this transaction so exciting, as we both pride ourselves on being community banks with a strong focus on relationship building, customer service, and community outreach. We are eager to expand our community banking model into eight new states and look forward to building relationships with the employees and clients who call these beautiful regions home.”

Pending regulatory and shareholder approvals, the transaction is expected to close during the first calendar quarter of 2022. The conversion of Great Western branches to First Interstate Bank is expected to take place during the second calendar quarter of 2022.

Upon close of the transaction, five directors from Great Western will join the First Interstate Board of Directors. First Interstate’s existing dual-class stock structure will sunset at the record date of First Interstate’s next annual shareholder meeting. At that time, existing First Interstate Class B common stock will be converted 1:1 into Class A common stock and First Interstate Bank will no longer be a controlled company.

“Throughout our many years of ownership, we have prided ourselves on the ability to stay true to our values and roots while simultaneously adapting, innovating, and responding to the unique needs of our clients and communities,” said Jim Scott, director of the board for First Interstate and son of First Interstate’s founders, Homer Scott Sr. and Mildred Scott. “This combination is an extension of our legacy in the region where our family’s roots began. It increases the bank’s community commitment while expanding our brand of community banking.”

The Scott family will remain significant shareholders in First Interstate and family members will continue to serve in board positions post-transaction.

To punctuate the milestone moment for the company and to celebrate the Scott family’s legacy, as part of this transaction, First Interstate will gift over $20 million to the First Interstate BancSystem Foundation.