Far West Bancorp. of Provo was acquired by a Spokane, Wash.-based regional bank chain for $150 million, bank officials said Thursday.

AmericanWest Bancorp. said the acquisition will add 16 Far West branches in Utah including six in Utah County to the Northwest bank’s portfolio of 43 financial centers in eastern and central Washington and northern Idaho and two loan production offices in Salt Lake City and Ellensburg, Wash.

The combined entity will operate in Utah as Far West Bank, a division of AmericanWest Bank, and will have $1.8 billion in assets, $1.4 billion in deposits and shareholders’ equity of about $270 million. AmericanWest’s seven-worker Salt Lake City office, now operating as Precision Bank, will also operate under the Far West name.

“AmericanWest is looking to add banks in new growth markets, and Utah is one. Precision Bank, which opened in June, has no market recognition yet. Clearly Far West has significant value in the franchise it has created over the past two years under co-founder Don Norton’s leadership, so it makes sense for us to keep and expand that name here,” said Robert M. Daugherty, president and CEO of AmericanWest Bank.

Founded in 1974, privately-held Far West, whose most recent acquisition was that of the Bank of Ephraim in June 2004, has 250 employees in Utah including 140 in Utah County.

“There will be some consolidation of back office functions after the merger is completed, but we haven’t identified who, when and how many layoffs will occur yet,” Daugherty said.

But the company plans to open three new Far West branches in Utah and Salt Lake counties by the end of 2007. “These new financial centers could create job opportunities for the affected workers,” he said.

AmericanWest said it expects to incur a $2.3 million pretax charge for the buyout in the first quarter of 2007.

Don Norton, co-founder, president and CEO of Far West Bank, said the acquisition would enable the community bank to offer new private and retail banking services and products and small business loans, as well as extend its lending limit, the type and size of its retail and business loans to help larger customers.

“The merger will also give Far West a liquid stock, and enable our people to have better quality training,” Norton said. “It will also enable AmericanWest to grow faster through acquisition instead of just organic growth.”

AmericanWest’s executive management team will manage the combined company, while Norton will serve as regional director. He and Ivan Call, chairman of Far West, will be appointed to the AmericanWest board once the merger is completed.

The cash and stock deal, which is pending regulatory approval, is expected to close in January. “Twenty percent of the $150 million will be paid in cash to shareholders of Far West and the remaining 80 percent will be paid in terms of AmericanWest bank stock. That means current Far West shareholders will be able to exchange their shares tax-free for AmericanWest bank shares, or they can opt to sell the stock in the open market,” Daugherty said. A special dividend of about $6.9 million will be issued to Far West’s 237 shareholders.

A Canadian native, Daugherty has more than 10 years of banking experience in Utah. He joined West One Bank in Utah in 1993 until it was acquired by U.S. Bank in the mid ’90s and then was hired by its real estate division in 1997. He bought Draper Bank and Trust in 1997, but sold it in 2001 to Zions Bank and then served as executive vice president of its insurance and credit card division.

This story appeared in The Daily Herald on page D6.