HELENA, Mont.--(BUSINESS WIRE)--
Eagle Bancorp Montana, Inc. (NASDAQ: EBMT) and its wholly-owned
subsidiary, American Federal Savings Bank (collectively “Eagle”) today
announced the receipt of regulatory approval from the Office of the
Comptroller of the Currency for the purchase of 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 also
strengthens Eagle’s mortgage origination franchise and adds a wealth
management business headquartered in Bozeman.
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.
“This transaction will double our branch network and increase our
footprint across southern Montana, while entering the two largest
markets in the state, Billings and Missoula. This transaction is, we
believe, a positive one for our Company and its shareholders because it
provides us with entry into new markets and permits the kind of growth,
through a single transaction, that otherwise would take several years if
we pursued a series of smaller transactions. We will become the sixth
largest bank (in terms of deposits) headquartered in Montana. We are
excited about the new customer base we will be working with and of
course about the melding of Sterling’s Montana staff with our own great
employees,” said Peter J. Johnson, President and CEO of Eagle Bancorp
Montana. 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
of approximately $500 million, total deposits in excess of $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.
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 and other risks or uncertainties detailed
in the Company’s Annual Report on Form 10-K for the fiscal year ended
June 30, 2012 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, 406-457-4006
President
and CEO
Clint J. Morrison, 406-457-4007
SVP and CFO
Source: Eagle Bancorp Montana, Inc.