Logan-based Cache Valley Bank will acquire eight AmericanWest Bank branches in central and southern Utah, with the transaction expected to be completed in the third fiscal quarter of this year.
The banks have entered into a definitive agreement, and the acquisition is subject to regulatory approval and all other customary conditions of closing. The branches included are Price, Fairview, Mt. Pleasant, Nephi, Loa, St. George and two in Ephraim.
“We felt like there were some opportunities in these communities,” Gregg Miller, president of Cache Valley Bank, told The Herald Journal on Thursday.
Miller confirmed the purchase was for at least several million dollars, without citing a specific figure.
The current branch leadership and teams will remain in place. The branches will continue to operate as AmericanWest Bank until the transaction is finalized.
Miller noted applications have already been submitted to the Federal Deposit Insurance Corporation, or FDIC, and the Utah Department of Financial Institutions.
Upon approval, the branches will become Cache Valley Bank, expanding its reach into four additional counties across Utah. That will bring the total number of branches to 15 in seven Utah counties.
Cache Valley Bank already operates locations in St. George. In May 2012, it purchased three branches from Village Bank, and in November 2011, the institution bought the SunFirst Bank.
AmericanWest Bank has locations in Utah, Washington, Oregon, California and Idaho.
The sale will also allow AmericanWest Bank to reshape its service area in Utah, focusing on serving the communities along the Interstate 15 corridor from North Salt Lake to Utah County, according to a joint news release.
“Today’s banking environment requires a greater level of strategic discipline to not only compete but to be an exceptional company — for your employees, customers and the communities you serve,” said Scott Kisting, chairman and CEO of AmericanWest Bank. “This sale was a difficult decision, yet we know it was the right thing to do because it more closely aligns our footprint with our business banking focus while adding locations to Cache Valley Bank that are a natural fit with their strategy.”
Kisting added Thursday that Cache Valley Bank is getting “a really good market position in markets that they really like. ... They’re getting some people that are very well-trained, that are very well-connected in those local markets.”