First Interstate, Cascade Bank Merger
First Interstate Bank is expected to cut approximately 155 jobs after completing the bank’s largest ever acquisition. On Thursday, parent company First Interstate Bank System announced it will acquire Bend, Ore.-based Cascade Bank for $589 million, extending its reach into the Pacific Northwest. But, CEO Kevin Riley insists the customer experience will improve in all of the branches from South Dakota to the Pacific Northwest.
In an interview Friday from their headquarters in downtown Billings, Riley said as they get bigger, First Interstate can afford a better system and services to meet their needs. The acquisition deal is expected to close in the middle of 2017. It would add $3.2 billion and 50 branches in Oregon, Washington and Idaho to First Interstate’s portfolio. Shares of publicly traded First Interstate fell about 6 percent Friday to $36.05 in response to the announcement. Cascade Bank has about 600 employees, and First Interstate has 1727.