Enterprise Bank & Trust Expands Strategic Footprint in Arizona and Kansas with Acquisition of 12 First Interstate Bank Branches
In a significant move poised to reshape the banking landscapes of Arizona and Kansas, Enterprise Financial Services Corp (NASDAQ: EFSC), the parent company of Enterprise Bank & Trust, has entered into a definitive agreement to acquire 12 branch locations from First Interstate BancSystem, Inc. (NASDAQ: FIBK), the parent of First Interstate Bank. This strategic acquisition aims to bolster Enterprise Bank & Trust’s growing presence in high-potential markets while deepening its relationships with local communities and business clients.
A Dual-Market Acquisition Strategy
The transaction is structured as a purchase and assumption agreement between the subsidiaries of the two banking firms. Under the terms of the deal, Enterprise Bank & Trust will acquire the physical facilities, deposits, and certain assets associated with 12 First Interstate Bank branches—10 located in Arizona and 2 in Kansas. The deal includes the assumption of approximately $740 million in deposits and approximately $200 million in largely commercial loan balances.
This transaction represents a continuation of Enterprise’s expansion strategy, centered on deepening its presence in markets where it already has a growing footprint and a strong commercial banking reputation. Following the expected closing in the fourth quarter of 2025—subject to regulatory approval and customary closing conditions—the acquired branches will be fully integrated into the Enterprise Bank & Trust network.
Branch Locations and Market Penetration
The branches involved in the transaction are strategically situated in rapidly growing or well-established communities:
- Arizona branches include:
- North Scottsdale
- Old Town Scottsdale
- Chandler
- Tucson
- Eloy
- Coolidge
- Globe
- Maricopa
- Casa Grande
- Nogales
- Kansas branches include:
- Overland Park
- Shawnee
Post-acquisition, Enterprise Bank & Trust’s Arizona presence will expand to a total of 12 full-service branches with combined deposits reaching approximately $1.3 billion. In Kansas, specifically within the greater Kansas City metropolitan area, the firm’s footprint will grow to nine branches with about $1.1 billion in deposits.
Leadership Insights on the Strategic Importance of the Deal
James B. Lally, President and Chief Executive Officer of Enterprise Financial Services Corp, emphasized the strategic alignment of the acquisition. “We are pleased to enter into this agreement with First Interstate Bank,” said Lally. “This is a unique and strategically aligned opportunity to expand our access to markets with both attractive growth opportunities and familiarity, and to continue to generate long-term value for our shareholders.”
He further noted that Enterprise’s initial entry into Arizona nearly 15 years ago has resulted in substantial growth, and this latest acquisition will reinforce that upward trajectory. “We believe our expanded presence will reinforce our ability to continue growing by offering favorable locations and improved access to our customers,” Lally said. “In addition, we are also very excited to solidify our presence in Kansas City through this transaction. We have differentiated our strategy from other banks in this market through our proven expertise and reputation in commercial banking.”
Lally highlighted the cultural and operational synergies between the two institutions. “By acquiring the banking operations in these two markets from an organization that aligns with our business-oriented and relationship-driven values, we believe we have found the ideal strategic move to advance our customer and community-centric approach,” he said. “We warmly welcome the existing customers and employees of these twelve branch locations and are excited about our future together.”
A Smooth Transition for Clients and Communities
Enterprise Bank & Trust has made it clear that it intends to prioritize continuity and a smooth transition for the customers and employees of the acquired branches. As part of the integration, the bank will retain the teams and infrastructure that have helped build customer loyalty at these locations.
“We place a high value on personal connections and trust, and understand the importance of both when it comes to fostering successful, long-lasting relationships,” Lally added. “We will be focused on ensuring a seamless transition while building on the valued franchises First Interstate Bank has established in these markets.”
First Interstate’s Strategic Reallocation
For First Interstate Bank, the decision to divest these branches aligns with its strategy of optimizing capital deployment and focusing on core markets. James A. Reuter, President and CEO of First Interstate BancSystem, Inc., expressed confidence in the partnership with Enterprise.
“We are pleased to enter into this agreement with Enterprise Bank & Trust,” said Reuter. “I am confident that Enterprise’s relationship-driven and customer- and community-centric approach aligns with our values, allowing these clients, employees, and communities to continue to flourish.”
Reuter emphasized that the deal enables First Interstate to focus on regions where it enjoys a stronger market share. “This agreement provides us an opportunity to shift our capital investment and drive growth in areas where we enjoy increased market share, while creating additional capital flexibility,” he said.
A Look Ahead: Integration and Regulatory Steps
The transaction remains subject to the standard regulatory review and closing conditions typical of such bank acquisitions. However, both organizations have expressed optimism that the process will move smoothly and close by early Q4 2025.
Once finalized, Enterprise Bank & Trust will begin the full operational integration of the newly acquired branches. Customers at the affected branches will receive information regarding any changes to their accounts, online banking, and services. Both banks are committed to providing robust communication and support to ensure that customers experience minimal disruption.
Advisors and Legal Counsel
The transaction has been guided by expert financial and legal advisors on both sides. Enterprise Financial Services Corp is being advised by Janney Montgomery Scott LLC as financial advisor and Holland & Knight LLP as legal counsel. On the other side, First Interstate BancSystem, Inc. is receiving advisory services from Keefe, Bruyette & Woods Inc. and legal counsel from Luse Gorman, PC.
Conclusion: A Shared Vision for Growth and Community Impact
This transaction underscores Enterprise Bank & Trust’s long-term commitment to building deeper relationships with communities and small- to mid-sized businesses through strategic market expansion. The acquisition of the 12 First Interstate Bank branches presents a powerful opportunity for Enterprise to extend its high-touch, relationship-focused banking model in two markets with significant potential.
For First Interstate, the divestiture represents a pivot toward higher-growth markets and more efficient capital allocation. Together, the move illustrates how both institutions are executing clear strategic visions focused on sustainable growth, customer value, and long-term impact.
As regulatory approvals are awaited and integration planning begins, customers in Arizona and Kansas can look forward to continued access to quality banking services—now backed by the expanded resources and expertise of Enterprise Bank & Trust.
About Enterprise Financial Services Corp
Enterprise Financial Services Corp (Nasdaq: EFSC), with approximately $15.7 billion in assets, is a financial holding company headquartered in Clayton, Missouri. Enterprise Bank & Trust, a Missouri state-chartered trust company with banking powers and a wholly-owned subsidiary of EFSC, operates branch offices in Arizona, California, Florida, Kansas, Missouri, Nevada, and New Mexico, and SBA loan and deposit production offices throughout the country. Enterprise Bank & Trust offers a range of business and personal banking services and wealth management services. Enterprise Trust, a division of Enterprise Bank & Trust, provides financial planning, estate planning, investment management and trust services to businesses, individuals, institutions, retirement plans and non-profit organizations. Additional information is available at www.enterprisebank.com.
Enterprise Financial Services Corp’s common stock is traded on the Nasdaq Stock Market under the symbol “EFSC.” Please visit our website at www.enterprisebank.com to see our regularly posted material information.
About First Interstate BancSystem, Inc.
First Interstate BancSystem, Inc. (Nasdaq: FIBK) is a financial services holding company headquartered in Billings, Montana. It is the parent company of First Interstate Bank, a community bank with $29.1 billion in assets as of December 31, 2024. First Interstate proudly delivers financial solutions across Arizona, Colorado, Idaho, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, North Dakota, Oregon, South Dakota, Washington, and Wyoming. A recognized leader in community banking services, First Interstate is driven by strong values as well as a commitment to delivering a rewarding experience to its employees, strong returns to shareholders, exceptional products and services to its clients, and resources to the communities it serves. More information is available at www.fibk.com.
