Why one bank just bought another to create Idaho’s 3rd-largest. How it could affect you
Bank of Idaho customers can expect their branches to start operating under a new name later this year.
Glacier Bancorp, the Kalispell, Montana, parent company of Mountain West Bank, says it plans to acquire Bank of Idaho Holding Co., the Idaho Falls-based parent company of Bank of Idaho, in the second quarter of 2025.
Here are answers to six key questions about the deal.
1. What will the acquired branches be named?
A dozen branches in the Boise area and Eastern Idaho would be affected, according to a news release from Mountain West Bank.
The Bank of Idaho has four branches in the Treasure Valley, a mortgage office in Twin Falls, seven branches in Eastern Idaho and five branches in Eastern Washington, according to its locations map.
All of the branches are expected to be incorporated into various divisions of Glacier Bank, the release said. The Treasure Valley branches and the Twin Falls mortgage office would join Mountain West Bank, the Eastern Idaho branches would join Citizens Community Bank, and the Eastern Washington branches would join into Wheatland Bank.
All of the branches would take on the names of their respective divisions.
“The Bank of Idaho name will no longer exist at the conclusion of the transaction,” Matt Borud, a spokesperson for Bank of Idaho, told the Idaho Statesman by email Tuesday.
The bank’s Treasure Valley locations include one in downtown Boise, one at the corner of Fairview Avenue and Five Mile Road, one off Overland Road near the Boise Costco, and one in Nampa.
2. How will bank customers be affected?
Borud said there would be no immediate changes for customers, who can continue using their existing credit and debit cards, checks and online banking services. The terms and conditions of loans and lines of credit will also remain the same, he added.
“Any changes will be communicated with generous advance notice,” Borud said.
3. Will workers lose their jobs?
Some may.
As the banks get closer to combining, there might be some positions that are no longer needed, though bank leaders don’t expect it to be a significant number, Borud said in response to a question about whether there would be layoffs.
“Glacier has made it a priority to find positions for as many of our Bank of Idaho people as possible,” he said. “The majority of people and positions are needed at the newly combined banks to continue taking care of customers and grow the business.”
4. Why did Glacier buy Bank of Idaho?
The Bank of Idaho is a “high-performing banking franchise with $1.3 billion in total assets,” Glacier said in a presentation to shareholders. Its acquisition “continues Glacier’s long tradition of adding best-in-class banks that align with the Glacier community-banking model.”
The acquisition “will position Glacier as the third-largest bank in Idaho by deposit market share,” the presentation said.
Glacier has been buying up other banks for years. It says Bank of Idaho is its 26th bank acquisition since 2000 and its 12th in the past 10 years.
5. What does the change mean for shareholders?
Glacier, whose stock trades under the symbol GBCI, said the purchase is a “unique opportunity to acquire a high-growth community bank operating in existing Glacier markets, which provides meaningful EPS [earnings per share] accretion and low integration risk.” The transaction “will further enhance Glacier’s long-term track record of creating shareholder value,” the bank said.
The deal, worth $245.4 million, is expected to close in the second quarter of 2025, pending regulatory and shareholder approval.
The purchase values Bank of Idaho Holding Co.’s stock at $52.47 a share, according to Glacier Bancorp’s own news release. Bank of Idaho shareholders are expected to receive 1.1 shares of Glacier stock for each Bank of Idaho share.
Bank of Idaho trades on the over-the-counter market under the symbol BOID. After the announcement, its share price skyrocketed, closing at $50.55 on Tuesday, a near 40% jump from its closing price of $36.50 on Monday. Before the deal was announced, its price had already risen 27% in the last year.
Glacier’s stock closed Monday at $48.15 before trading closed on the New York Stock Exchange and before Glacier announced the acquisition. It closed at $50.76 on Tuesday, up about 5%, on heavier-than-normal trading.
6. What does Bank of Idaho say about the takeover?
“Bank of Idaho is a true community bank, and we are pleased to find a partner that shares the same vision, values and relationship banking model that has been core to our success over the years,” Bank of Idaho President, CEO and Chairman Jeff Newgard said in the news release.
The release said Glacier Bancorp uses a community banking model that “gives their local bank divisions autonomy in each market.”
The boards of Bank of Idaho and Glacier Bancorp unanimously approved the deal.
Business and Local News Editor David Staats contributed.
