First Interstate to acquire Flathead Bank

First Interstate BancSystem, Inc., Billings, Mont., will buy Flathead Bank of Bigfork, Mont., for $34.2 million in cash..Founded by a group of local businessmen in 1971, Flathead Bank has total assets of $231.6 million and currently operates seven branches throughout western and northwestern Montana.."Bringing our two companies together gives us the opportunity to expand our state-wide market in Montana and provides us with a solid presence in the Gallatin and Flathead markets," said First Interstate President and CEO Kevin Riley..The $8.7 billion First Interstate acquired Absarokee Bancorp last year and Mountain West Financial in 2014..First Interstate Bank was advised in the transaction by Sandler O'Neill & Partners, L.P. as financial advisor, and Luse Gorman, PC as legal counsel. Flathead Bank was advised in the transaction by D.A. Davidson & Co. as financial advisor, and Lindquist & Vennum LLP as legal counsel..The deal is expected to close in the third quarter.