Eagle Bancorp Montana, the holding company of Opportunity Bank of Montana, has signed an agreement to acquire Big Muddy Bancorp and its wholly owned subsidiary, The State Bank of Townsend, Townsend, Montana.
Opportunity Bank’s acquisition of the $110m in assets Townsend, which is structured as an all stock deal, will further solidify its position as the fourth largest Montana based bank with approximately $940 million in assets.
Townsend currently operates 4 branches in Townsend, Dutton, Denton and Choteau and the acquisition will provide Opportunity with an additional $110 million in assets, $94 million in deposits, and $92 million in gross loans. Opportunity Bank will have, upon completion of the transaction, 21 retail branches in Montana.
The board of directors for both companies unanimously approved the transaction, which is subject to the approvals of bank regulatory agencies, the shareholders of Big Muddy Bancorp, Inc. and other customary closing conditions.
Upon completion of the transaction, Ben Ruddy, currently President of Big Muddy Bancorp, Inc. will join the Boards of Directors of both Eagle and Opportunity Bank and will lead the new branch efforts in north central Montana.
Eagle president and CEO Peter Johnson said: “We are excited about the opportunity that enables Big Muddy Bancorp, Inc., and The State Bank of Townsend to join the Eagle team.
“This transaction presents a unique opportunity for Eagle to expand our presence in the attractive markets of Broadwater, Fergus, and Teton Counties.
“The combination provides the ability to create revenue and cost synergies while offering The State Bank of Townsend customers a broader product offering, increased lending limits, and an expanded branch delivery system that stretches throughout the state of Montana. We continue to diversify our balance sheet and our geographic footprint while approaching our target of $1 billion in total assets.”
“This combination allows us to partner with a strong community bank that is focused on providing great customer service, a deep commitment to the communities where it operates, and an excellent environment for employees,” said Ruddy.
“We look forward to working with the management team at Eagle to better serve our customers and become the bank of choice in our markets.”
Under the terms of the definitive agreement signed by the parties, Big Muddy Bancorp shareholders will receive 20.49 shares of Eagle common stock, for a total transaction value of approximately $19.0 million.
The deal is expected to close during the first quarter of 2019. Eagle was represented by Panoramic Capital Advisors and Nixon Peabody LLP while Big Muddy was represented by Ballard Spahr LLP and Vining Sparks IBG, LP.
Eagle Bancorp Montana, Inc. is a bank holding company headquartered in Helena, Montana and is the holding company of Opportunity Bank, a community bank established in 1922 that serves consumers and small businesses in Montana through 17 retail banking offices.
Source: Company Press Release