Eagle Bancorp Montana and its wholly-owned subsidiary, American Federal Savings Bank (Eagle) have received regulatory approval from the Office of the Comptroller of the Currency to acquire seven branches from Sterling Savings Bank.
Pending customary closing conditions as well as satisfying conditions mentioned in the Purchase and Assumption Agreement, the deal is expected to close on or about 30 November 2012.
Following completion of the deal, Eagle’s franchise will increase to 13 branches, while enhancing its branch network throughout Southern Montana.
The transaction will also boost the acquirer’s mortgage origination franchise and adds a wealth management business headquartered in Bozeman.
Apart from receiving nearly $44m of pass-rated, performing loans, the company will acquire $187m of deposits for an estimated deposit premium of 3.88%, or almost $7.3m.
On closing of the deal, Eagle will have total assets of nearly $500m, total deposits in excess of $400m, and a tangible common equity to tangible assets ratio of almost 9%.
Set up in 1922, the community bank serves consumers and small businesses in Southcentral Montana through six banking offices.