On July 24, 2015, the Company acquired all of the outstanding stock of Absarokee Bancorporation, Inc. ("Absarokee"), a Montana-based bank holding company operating one subsidiary bank, United Bank, with branches located in three Montana communities adjacent to the Company's existing market areas. As a result of the acquisition, the Company increased its presence in the state of Montana. The Company merged United Bank with and into FIB immediately subsequent to the acquisition. The Company paid cash consideration for the acquisition of $7,234.

On July 31, 2014, the Company acquired all of the outstanding stock of Mountain West Financial Corp ("MWFC"), a Montana-based bank holding company operating one subsidiary bank, Mountain West Bank, NA ("MWB"), with branches located in five of the Company's current market areas in Montana. The Company merged MWB with and into FIB on October 17, 2014. The acquisition allowed the Company to gain market share in several of its current market areas. The Company also benefited from cost savings related to the merger of MWB with FIB. Consideration for the acquisition of $74,451 consisted of cash of $38,479 and the issuance of 1,378,230 shares of the Company's Class A common stock valued at $26.10 per share, the closing price of the Company's Class A common stock as quoted on the NASDAQ stock market on the acquisition date.

The Absarokee and MWFC acquisitions were accounted for using the acquisition method with cash consideration funded from cash on hand. The assets and liabilities of the acquired entities were recorded in the Company's consolidated financial statements at their estimated fair values as of the acquisition dates. The excess value of the consideration paid over the fair value of assets acquired and liabilities assumed was recorded as goodwill. Goodwill arising from the acquisitions consists largely of the synergies and economies of scale expected from combining the operations of the acquired entities and the Company. These acquisitions were accounted for as tax-free exchanges; therefore, goodwill recorded in conjunction with the acquisitions is not deductible for income tax purposes. Fair values of assets acquired and liabilities assumed as part of the Absarokee and MWFC acquisitions were estimated using relevant market information and significant other inputs and generally fall within Levels 2 and 3 of the fair value hierarchy.

The following table summarizes the consideration paid, fair values of the assets acquired and liabilities assumed and the resulting goodwill. During 2015, the Company completed its review of MWFC tax items and finalized the fair value of acquired deferred tax assets resulting in a $1,199 decrease in goodwill.



	Absarokee		MWFC
	July 24, 2015		July 31, 2014

Assets acquired:
Cash and cash equivalents	$	5,598	$	74,035
Investment securities	27,574		104,911
Loans	36,644		360,272
Allowance for loan losses	—		—
Premises and equipment	3,128		29,436
Company-owned life insurance	—		13,046
Core deposit intangible assets	695		11,014
Other assets	898		18,885
Total assets acquired	74,537		611,599
Liabilities assumed:
Deposits	63,565		515,379
Repurchase agreements	2,000		—
Long term debt	1,253		—
Subordinated debentures held by subsidiary trusts	—		20,439
Other liabilities	633		23,231
Total liabilities assumed	67,451		559,049
Net assets acquired	7,086		52,550
Consideration paid:
Cash	7,234		38,479
Class A common stock	—		35,972
Total consideration paid	7,234		74,451
Goodwill	$	148	$	21,901

Core deposit intangible assets related to the Absarokee and MWFC acquisitions of $695 and $11,014, respectively, are being amortized using an accelerated method over the estimated useful lives of the related deposits of 10 years.

The Company recorded third party acquisition-related costs of $795 and $4,017 in 2015 and 2014, respectively. These costs are included in acquisition expenses in the Company's consolidated statements of income.

The accompanying consolidated statements of income include the results of operations of the acquired entities from their acquisition dates. The operations of Absarokee and MWFC were immediately integrated with the Company's operations and the acquired banks were merged with FIB. As such, the Company has determined it is not practical to report post-acquisition date revenues and net income of the acquired entities that were included in the Company's consolidated income statements for the years ended December 31, 2015 and 2014.

Unaudited pro forma consolidated revenues and net income as if the Absarokee acquisition had occurred as of January 1, 2014, are not presented because the effect of this acquisition was not considered significant.

The following table presents unaudited pro forma consolidated revenues and net income as if the MWFC acquisition had occurred as of January 1, 2013.



Year ended December 31, (unaudited)	2014		2013
Interest income	$	280,102	$	280,455
Non-interest income	114,984		120,005
Total revenues	$	395,086	$	400,460

Net income	$	87,129	$	84,264

The unaudited pro forma net income presented in the table above for 2014 was adjusted to exclude acquisition-related costs, including change in control expenses related to employee benefit plans, stock option cancellation fees and legal and professional expenses, of $5,052, net of tax. Pro forma net income presented in the table above for 2013 was adjusted to include the aforementioned acquisition-related costs. The unaudited pro forma net income presented in the table above for 2014 and 2013 includes adjustments for scheduled amortization of core deposit intangible assets acquired in the acquisition. No adjustments were made for operating costs savings and other business synergies expected as a result of the acquisition, or accretion or amortization of fair value adjustments other than core deposit intangible assets.