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ST. LOUIS & BILLINGS, Mont. - Enterprise Financial Services Corp (NASDAQ: EFSC), the holding company of Enterprise Bank & Trust, has agreed to acquire twelve branches from First Interstate BancSystem, Inc.’s (NASDAQ: FIBK) First Interstate Bank. The transaction includes ten branches in Arizona and two in Kansas, with a transfer of approximately $740 million in deposits and certain loans totaling about $200 million.
The deal, pending regulatory approval and customary closing conditions, is expected to finalize by early fourth quarter of 2025. Upon completion, Enterprise Bank & Trust will grow its Arizona market presence to twelve branches with roughly $1.3 billion in deposits and expand its Kansas City area footprint to nine branches with approximately $1.1 billion in deposits.
James B. Lally, President and CEO of Enterprise Financial Services Corp, highlighted the strategic alignment of the acquisition with Enterprise’s growth objectives and commitment to generating shareholder value. He emphasized the importance of personal connections and trust in banking relationships and assured a smooth transition for customers and employees of the acquired branches.
James A. Reuter, President and CEO of First Interstate BancSystem, expressed confidence in Enterprise’s ability to uphold the values and continue the growth of the communities served by the branches being sold. He noted that the agreement allows First Interstate to reallocate capital investment and drive growth in areas with a stronger market share.
Janney Montgomery Scott LLC and Holland & Knight LLP are advising Enterprise on the transaction, while Keefe, Bruyette and Woods Inc. and Luse Gorman, PC are advising First Interstate.
This expansion will enhance Enterprise Bank & Trust’s services in these regions and follows their established pattern of growth through strategic acquisitions. The information regarding this acquisition is based on a press release statement.
In other recent news, First Interstate BancSystem Inc. reported its fourth-quarter 2024 earnings, revealing a net income of $52.1 million and an earnings per share (EPS) of $0.50, which fell short of the forecasted $0.58. However, the company’s revenue exceeded expectations, reaching $261.3 million against a forecast of $251.24 million. The company declared a dividend of $0.47 per share, yielding 5.8%. In a strategic move, First Interstate BancSystem announced a CFO transition plan, with Marcy D. Mutch set to retire on May 31, 2025, and David P. Della Camera, the current Deputy CFO, appointed to succeed her. Additionally, the company disclosed the upcoming retirements of board directors Thomas E. Henning and Frances P. Grieb at the 2025 annual meeting. Analyst firm Piper Sandler noted potential risks to near-term loan growth for banks, including First Interstate BancSystem, but highlighted long-term opportunities from events like the World Cup and Olympics. Piper Sandler also anticipates increased mergers and acquisitions among Western banks, which could impact First Interstate BancSystem’s strategic direction.
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