HELENA, Mont.--(BUSINESS WIRE)--
Eagle Bancorp Montana, Inc. (NASDAQ: EBMT) and its wholly-owned
subsidiary, American Federal Savings Bank (collectively “Eagle”), today
announced the signing of a definitive agreement to purchase seven branch
banking locations from Sterling Savings Bank, a wholly-owned subsidiary
of Sterling Financial Corporation (NASDAQ: STSA). The transaction will
expand Eagle’s franchise to 13 branches and extend its branch network
throughout Southern Montana. In addition, the transaction strengthens
Eagle’s mortgage origination franchise and adds a wealth management
business headquartered in Bozeman.
Under the terms of the agreement, Eagle will acquire approximately $187
million of deposits for an estimated deposit premium of 3.88%, or
approximately $7.3 million. Additionally, Eagle will receive
approximately $44 million of pass-rated, performing loans. It is
expected that the transaction will be immediately accretive to Eagle’s
earnings per share.
“We are truly thrilled to be expanding our footprint with these branch
locations. This transaction will provide our existing customers with
added convenience and service and our new customers with the opportunity
to enjoy the outstanding personalized service and commitment of a
Montana-based community bank,” said Peter J. Johnson, President and CEO.
Of the seven branches being acquired six are in new markets for Eagle,
including 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.
Upon completion of the transaction, Eagle expects to have total assets
exceeding $500 million, total deposits in excess of $400 million, and a
tangible common equity to tangible assets ratio of approximately 9%.
The sale is expected to be completed during the second quarter of
Eagle’s fiscal 2013 and remains subject to customary regulatory
approvals and other customary terms and conditions of sale.
Stifel Nicolaus Weisel acted as financial advisor to Eagle and Nixon
Peabody LLP acted as legal advisor in the transaction. D.A. Davidson &
Co. acted as financial advisor to Sterling Financial Corporation and
Bingham McCutchen LLP acted as legal advisor.
Conference Call
Eagle Bancorp Montana, Inc. will hold a conference call at 9:00 a.m.
Mountain Time (11:00 a.m. Eastern Time) on Monday, July 2, 2012 to
review the transaction. The number for the conference call is
1-877-317-6789. An investor presentation related to the transaction will
be filed with the Securities and Exchange Commission and will be
available at www.sec.gov
and on Eagle’s website on the investor relations page at www.americanfederalsavingsbank.com.
A replay of the call will be available through August 2, 2012 by calling
1-877-344-7529 and entering conference number 10015777.
About Eagle
Eagle Bancorp Montana, Inc. is a bank holding company headquartered in
Helena, Montana and is the holding company of American Federal Savings
Bank, a community bank established in 1922 that serves consumers and
small businesses in Southcentral Montana through six banking offices.
Additional information is available on the bank’s website at www.americanfederalsavingsbank.com.
The shares of Eagle Bancorp Montana, Inc. are traded on the NASDAQ
Global Select Market under the symbol “EBMT.”
This release shall not constitute an offer to sell or the solicitation
of an offer to buy securities in any jurisdiction in which such
solicitation would be unlawful.
Forward-Looking Statements
This release may contain certain "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934, and may be identified by the use
of such words as "believe," "expect," "anticipate," "should," "planned,"
"estimated," and "potential." These forward-looking statements include,
but are not limited to statements of our goals, intentions and
expectations. These forward-looking statements are based on current
beliefs and expectations of our management and are inherently subject to
contingencies, many of which are beyond our control. Actual and
anticipated future results may vary due to certain risks and
uncertainties, including, without limitation;changes in laws or
government regulations or policies affecting financial institutions,
including changes in regulatory fees and capital requirements; general
economic conditions, either nationally or in our market areas, that are
worse than expected; competition among depository and other financial
institutions; loan demand or residential and commercial real estate
values in Montana; inflation and changes in the interest rate
environment that reduce our margins or reduce the fair value of
financial instruments; adverse changes in the securities markets; and
other economic, governmental, competitive, regulatory and technological
factors that may affect our operations; our ability to successfully
integrate acquired businesses; our ability to obtain any requisite
regulatory approval for the acquisition of the Sterling Savings Bank
branches; and other risks or uncertainties detailed in the Company’s
Annual Report on Form 10-K for the fiscal year ended June 30, 2011 and
other periodic filings with the Securities and Exchange Commission and
available at the SEC’s website at http://www.sec.gov.
We wish to caution you that these factors could affect our financial
performance and could cause actual results for future periods to differ
materially from any opinions or statements expressed with respect to
future periods in any current statements.The Company undertakes
no duty or obligation to update this information in the future.
Eagle Bancorp Montana, Inc.
Peter J. Johnson, President and CEO,
406-457-4006
Source: Eagle Bancorp Montana, Inc.