Opportunity Bank’s acquisition of the $100 million in assets Western, which is structured as a 50% cash and 50% stock deal, will further solidify its position as the fourth largest Montana based bank with approximately $1.10 billion in assets.
Western currently operates one branch in Wolf Point and the acquisition will provide Opportunity with an additional $100 million in assets, $77 million in deposits, and $41 million in gross loans, based on June 30, 2019 information. Opportunity Bank will have, upon completion of the transaction, 22 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 Western Holding Company of Wolf Point, and other customary closing conditions. Upon completion of the transaction, Duane Kurokawa, currently President of Western Holding Company of Wolf Point, will lead the new branch efforts in northeastern Montana.
“We are thrilled to have Western Holding Company, and the employees of Western Bank of Wolf Point join the Eagle team,” stated Peter J. Johnson, President and CEO of Eagle. “This transaction presents a great opportunity for Eagle to expand our presence in the north eastern portion of the state. The combination provides the ability to create revenue and cost synergies while offering Western customers a broader product offering, increased lending limits, and an expanded branch delivery system that stretches throughout the state of Montana.”
“Being able to partner with a strong community bank that is focused on providing great customer service and has a deep commitment to the communities where it operates, is a great opportunity for us,” said Duane Kurokawa.
Under the terms of the definitive agreement signed by the parties, Western Holding Company of Wolf Point shareholders will receive an aggregate of 395,859 shares of Eagle common stock and $6.5 million in cash, for a total transaction value of approximately $13.0 million.
The deal is expected to close during the fourth quarter of 2019. Eagle was represented by Nixon Peabody LLP and Panoramic Capital Advisors, Inc. while Western Holding Company of Wolf Point was represented by Ballard Spahr LLP and Vining Sparks, IBG, LP.
Source: Company Press Release
