Mergers & Acquisitions

Return to Mergers & Acquisitions

Deal Overview

Buyer:
First Interstate BancSystem, Inc.
Actual Acquirer:
First Interstate BancSystem, Inc.
Target:
Mountain West Financial Corp.
Deal Type:
Bank & Thrift Company
Agreement Date:
2/10/2014
Announcement Date:
2/10/2014
Announced Deal Value ($ M):
78.28
Status:
Completed
Completion Date:
7/31/2014
Announced Deal Value Per Share ($ )
13.44

Consideration Breakout
Cash ($M) 40.3
Common Stock ($M) 38.1
Common Stock Issued 1,378,230

Deal Pricing Ratios

Announcement Completion
Price / Book (%) 114.1 117.0
Price / Tangible Book (%) 121.2 124.0
Price / Earnings (x) 15.7 16.2
Price / Deposits (%) 14.50 15.25
Price / Assets (%) 12.11 12.64
Tangible Book Premium/ Deposits (%) 4.31 4.46
Deal Terms
Description of Consideration

First Interstate BancSystem Inc. paid $7.125 in cash and exchanged 0.2552 shares of its common stock for each outstanding share of Mountain West Financial Corp. First Interstate BancSystem Inc. also redeemed approximately $19.8 million trust preferred after closing at par.

Accounting Method Acquisition
In-State Transaction? Yes
Merger of Equals? No
Geographic Expansion? In Market
Goodwill Generated ($ 000) 20,702
Estimated Cost Savings (%) 35.00
Estimated Cost Savings ($ 000) 7,990
Est. Restructuring Charges ($ 000) 7,200
Maximum Termination Fee ($ 000) 3,000
Minimum Termination Fee ($ 000) 0
Exchange Ratio (Common For Common) 0.255200
Exchange Ratio (Common For Preferred) NA
Exchange Ratio (Preferred For Common) NA
Exchange Ratio (Preferred For Preferred) NA
Lockup Agreement No
Strike Price ($ ) NA
% of Shares Outstanding NA
Shares Under Option NA
Core Deposit Intangibles ($ 000) 11,014
Deal Advisers
Financial Advisers
Party Advised Adviser Hired? Firm Name
Buyer Yes Sandler O'Neill & Partners LP
Seller Yes D.A. Davidson & Co.
Legal Counsel
Party Advised Adviser Hired? Firm Name
Buyer Yes Christian Samson Jones
Seller Yes Fredrikson & Byron PA