Glacier Bancorp Inc. has agreed to acquire Bank of Idaho Holding Co., a transaction that's expected to lead to further growth for Spokane-based Wheatland Bank and Coeur d'Alene-based Mountain West Bank. 

The $254 million acquisition is expected to be completed during this year's second quarter. The boards of both Glacier Bancorp and Bank of Idaho have approved the transaction, which now awaits regulatory approval. 

Upon finalization of the transaction, Bank of Idaho's Eastern Washington branches will join Wheatland Bank, which is a division of Glacier. Those branches are located in the Washington cities of Pasco, Richland, Dayton, Sunnyside, and Yakima. 

In a press release, Wheatland President and CEO Sue Horton says, "Bank of Idaho’s footprint complements Wheatland’s and will deepen our penetration in existing markets and give us a great presence in new markets we had targeted for expansion."

Similarly, the four Bank of Idaho branches in the Boise area will become part of Mountain West, also a division of Glacier. 

The remaining branches in eastern Idaho will become part of Glacier's Citizens Community Bank division. 

Headquartered in Idaho Falls, Bank of Idaho had $1.3 billion in total assets and $1 billion in total deposits as of Sept. 30. 

For Glacier Bancorp, the transition is expected to be its 26th since 2000 and its 12th in the past 10 years. The Kalispell, Montana-based company reports total assets of $28.2 billion.