Eagle Bancorp Montana is headquartered in Helena, Montana, and is the holding company of Opportunity Bank of Montana

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Eagle Bancorp Montana to acquire First Community Bancorp. (Credit: PublicDomainPictures from Pixabay.)

Eagle Bancorp Montana, Inc. (NASDAQ: EBMT), (the “Company,” or “Eagle”), the holding company of Opportunity Bank of Montana, today announced that it has reached an agreement to acquire First Community Bancorp, Inc., and its subsidiary, First Community Bank (“First Community”). The transaction is Eagle’s fourth announced acquisition of a Montana-based bank since 2017, and its largest transaction to date. Headquartered in Glasgow, Montana, First Community is the largest bank headquartered in Northeast Montana with $374 million in total assets. First Community currently operates nine branches and two mortgage LPOs, including commercial-focused branches in Helena and Three Forks (Gallatin County). The acquisition will further solidify Eagle’s position as the fourth largest Montana-based bank with over $1.7 billion in pro forma assets and add $307 million in deposits and $220 million in gross loans, based on June 30, 2021 information. Upon completion of the acquisition, Opportunity Bank of Montana will have 32 retail branches in key commercial and ag markets across Montana.

The board of directors for both companies unanimously approved the transaction, which is subject to the approvals of bank regulatory agencies, the shareholders of First Community, and Eagle, and other customary closing conditions.

“We are thrilled to welcome First Community, and its employees to the Eagle team,” stated Peter J. Johnson, President and CEO of Eagle. “First Community is an experienced agriculture and commercial lender with a 130-year operating history in Montana and deep roots in the communities it serves. This transaction expands our presence across the state of Montana and builds on our reputation as an experienced and preferred agricultural lender across the state. The combination of our two companies is a complementary fit with our banking culture and provides the ability to create revenue and cost synergies while offering First Community Bank customers broader product offerings, increased lending limits, and an expanded branch delivery system that stretches throughout the state of Montana. I am also pleased to announce that at the closing of the transaction, Sam Waters, the Chairman and President of First Community, will join the boards of Eagle and Opportunity Bank of Montana, and that Kris Simensen, the CEO of First Community Bank, will serve as our Northeast Montana Regional Market President.”

“Being able to partner with a strong community bank that is focused on providing great customer service and has a deep commitment to the communities where it operates, is a great opportunity for us,” said Kris Simensen, CEO of First Community Bank.

Under the terms of the definitive agreement signed by the parties, First Community shareholders will receive 37.7492 shares of Eagle common stock and $276.32 in cash for each share of First Community common stock. In aggregate, First Community shareholders will receive 1,396,721 shares of Eagle common stock and $10.2 million in cash, for a total transaction value of approximately $41.3 million, based on the Eagle common stock closing price of $22.25 on September 27, 2021. In addition, First Community shareholders shall be entitled to a special dividend at closing equal to the amount tangible common shareholders’ equity exceeds $29.5 million, subject to certain conditions.

The deal is expected to close during the fourth quarter of 2021. Eagle was represented by Nixon Peabody LLP as legal advisor and D.A. Davidson & Co. as financial advisor and First Community was represented by Ballard Spahr LLP as legal advisor and ProBank Austin as financial advisor.

Source: Company Press Release