The deal will lead to the addition of a wealth management business headquartered in Bozeman and will also expand Eagle’s franchise to 13 branches, in addition to extending its branch network throughout Southern Montana.
The transaction will see Eagle acquiring approximately US$187 million of deposits of Sterling Financial for an estimated deposit premium of 3.88%, or approximately US$7.3 million.
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Eagle will also receive approximately US$44 million of pass-rated, performing loans and it is expected that the transaction will be immediately accretive to Eagle’s earnings per share.
Of the seven branches being acquired by Eagle, six are in new markets, that include two in Missoula, one in Billings, and one each in Hamilton, Livingston and Big Timber. The seventh is in Bozeman where Eagle already has a presence.
And post-acquisition, Eagle expects to have total assets of approximately US$500 million, total deposits in excess of US$400 million, and a tangible common equity to tangible assets ratio of approximately 9%.
The transaction is expected to be completed on or about November 30, 2012, subject to satisfaction of the closing conditions set forth in the Purchase and Assumption Agreement and other customary closing conditions.
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