Bank of Idaho announces purchase of Dayton HomeStreet Bank

IDAHO FALLS, IDAHO–Bank of Idaho Holding Co. (OTCQX: BOID), the holding company for Bank of Idaho, announced it has entered into a purchase agreement with Seattle-based HomeStreet, Inc. (NASDAQGS: HMST) to acquire an eastern Washington branch network. The company will extend its branch footprint by acquiring five branches in Spokane, Kennewick, Dayton, Yakima, and Sunnyside.

“Bank of Idaho’s roots serving communities across the western landscape make it a perfect fit in eastern Washington,” Bank of Idaho President and CEO Jeff Newgard said. “Our shared values–and way of life–will be a comfort to all our customers, who will experience great service, enhanced opportunity and dedication to community Bank of Idaho is known for in our new, united footprint.”

It is anticipated that the transaction will close on or before August 1, 2022, subject to customary regulatory application processes and approvals. Bank of Idaho and HomeStreet are committed to working closely together to assist clients during the transition and meet all client customer service needs through the completion of the transaction.

Dayton, in particular, is “near and dear to my heart,” Newgard told the Dayton Chronicle this week. “Central and eastern Washington is where I got my start in banking. This is like coming home for me. Bank of Idaho will be banking with people that I love.”

At one point in his career, Newgard worked for Bank of the West and its president and CEO, the late Wes Colley. “Wes was one of my supervisors and mentors,” he said. He is familiar with the Dayton branch from his days with Bank of the West.

“The main thing that I’ve learned through Wes and from my experience banking in eastern Washington,” Newgard continued, “is the fact that people bank with people. They don’t bank with a logo or a building or a fancy desk, they bank with people they trust and with whom they’ve had a relationship. That banker will be their banker for years,” he said.

Newgard pointed out that in order to acquire the five HomeStreet branches, Bank of Idaho had to raise between $35 and $40 million, but investors showed “an outpouring of interest and support and oversubscribed.” Bank of Idaho was able to raise $53 million, making it the top “capital raise” in the western United States, and fourth in the country, he said.

“Investors recognize our ability to harness the power of relationship banking and commercial banking,” he said. “There’s no gimmick to it,” Newgard said. “It was honest and it was real, and it all goes back to taking care of people.”