BILLINGS, Montana — First Interstate BancSystem Inc. (Nasdaq: FIBK), a Billings-based institution, is acquiring Sioux Falls-headquartered Great Western Bancorp Inc. (NYSE: GWB) in an all-stock transaction valued at about $2 billion.

The acquisition greatly expands First Interstate’s holdings in the Rocky Mountain region.

First Interstate’s closest branch to the Boulder Valley and Northern Colorado is in Cheyenne. The company operates locations throughout Wyoming, Montana, South Dakota, Washington, Oregon and Idaho.

Great Western operates 174 branches in Arizona, Colorado, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota, including throughout Northern Colorado and the Boulder Valley. Local branches are in Boulder, Broomfield, Erie, Fort Collins, Greeley, Lafayette, Longmont, Louisville and Loveland.

Great Western locations will be rebranded. That conversion to First Interstate branding will occur in mid-2022, assuming regulator bodies and shareholders approve.

Closing of the acquisition is expected in the first quarter of next year. 

“We’re excited to join forces, and confident that both companies’ stakeholders will benefit from this partnership,” Great Western CEO Mark Borrecco said in a prepared statement. “We’ll be able to offer customers access to additional branch locations and new products and services, provide new growth and professional development opportunities to our employees, deliver additional returns to our shareholders, and have an even greater impact on our communities.”

The merged bank will be headquartered in Billings but will retain a presence in Sioux Falls. 

When combined, the institution will have about $32 billion in assets and more than 300 branches across 14 states.

This acquisition marks the second time in 2021 that major out-of-state banks merged, resulting in Northern Colorado and Boulder Valley branch conversions. 

In June, PNC Financial Services Group Inc. (NYSE: PNC) completed its $11.6 billion acquisition of BBVA USA Bancshares Inc.

PNC is in the process of converting local BBVA branches in Boulder, Fort Collins, Greeley, Lafayette, Longmont, Loveland and Westminster.

© 2021 BizWest Media LLC