Enterprise Financial Services and First Interstate BancSystem have announced the signing of a purchase and assumption agreement by their respective wholly-owned subsidiaries, Enterprise Bank & Trust and First Interstate Bank, pursuant to which Enterprise Bank & Trust will acquire 12 branches from First Interstate Bank. The acquisition consists of two separate franchises, with 10 branches in Arizona and two branches in Kansas. The purchase and assumption agreement provides for the transfer by First Interstate Bank to Enterprise Bank & Trust of the facilities and other associated assets of the branches, approximately $740 million in deposits, and certain, mostly commercially-oriented, loans with outstanding balances of roughly $200 million. Upon closing of the transaction, the following branches will become a part of Enterprise Bank & Trust:
Arizona Locations:
- North Scottsdale
- Old Town Scottsdale
- Chandler
- Maricopa
- Casa Grande
- Eloy
- Coolidge
- Globe
- Tucson
- Nogales
Kansas Locations:
The purchase of the branches by Enterprise Bank & Trust is subject to regulatory approval and satisfaction of certain customary closing conditions. The parties expect to close on the purchase and sale of the First Interstate Bank branches by early fourth quarter of 2025, at which point the branches will be fully converted to operate as Enterprise Bank & Trust branch offices. On a pro forma basis, following the branch acquisition, Enterprise will expand its market presence in Arizona to 12 full-service branch locations with approximately $1.3 billion of deposits. In the greater Kansas City metropolitan area, the transaction will increase Enterprise’s physical presence to nine full-service branch locations with approximately $1.1 billion of deposits.
James B. Lally, President and CEO of Enterprise Financial Services Corp stated, “We are pleased to enter into this agreement with First Interstate Bank. This is a unique and strategically-aligned opportunity to expand our access to markets with both attractive growth opportunities and familiarity and to continue to generate long-term value for our shareholders. Since entering the Arizona market nearly fifteen years ago, we have grown our business significantly. We believe our expanded presence will reinforce our ability to continue growing by offering favorable locations and improved access to our customers. In addition, we are also very excited to solidify our presence in Kansas City through this transaction. We have differentiated our strategy from other banks in this market through our proven expertise and reputation in commercial banking.”
Lally continued, “By acquiring the banking operations in these two markets from an organization that aligns with our business-oriented and relationship-driven values, we believe we have found the ideal strategic move to advance our customer and community-centric approach. We warmly welcome the existing customers and employees of these 12 branch locations and are excited about our future together. We place a high value on personal connections and trust, and understand the importance of both when it comes to fostering successful, long-lasting relationships. We will be focused on ensuring a seamless transition while building on the valued franchises First Interstate Bank has established in these markets.”
James A. Reuter, President and CEO of First Interstate BancSystem and First Interstate Bank stated, “We are pleased to enter into this agreement with Enterprise Bank & Trust. I am confident that Enterprise’s relationship-driven and customer and community-centric approach aligns with our values, allowing these clients, employees, and communities to continue to flourish. This agreement provides us an opportunity to shift our capital investment and drive growth in areas where we enjoy increased market share, while creating additional capital flexibility.”
Janney Montgomery Scott LLC and Holland & Knight LLP are acting as financial advisor and legal advisor, respectively, to Enterprise on the transaction.
Keefe, Bruyette and Woods Inc. and Luse Gorman, PC are acting as financial advisor and legal advisor, respectively, to First Interstate on the transaction.