Ibestad Sparebank is situated in the centre of Hamnvik, at the top of Hamnvikbakken (Hamnvik Hill), with extensive views to the north and east, and down into the old trading settlement. The monumental bank building is symmetrically centred in its form, standing on a base of coarsely-chiselled stone. Above the foundation wall, which extends right round the building, the façade is characterized by a massive wall of råkopp (stone cladding) of grey-white limestone. This two-storey building has an arched mansard roof, tiled with slates. The appearance of the bank is emphasized by a tower edifice at the centre and the large arch over the entrance section.

Ibestad Sparebank was built between 1917 and 1920 after designs from the architect Claus Johannesen Hjelte (1884-1969), who trained at the technical college in Trondheim. Hjelte worked with Lars Solberg in Trondheim before starting his own practice in 1912.