Banner Bank is expanding in the Pacific Northwest with the acquisition of another community financial institution.
On Tuesday, Sept. 24, it was announced that Banner would acquire Home Federal Bank, which is headquartered in Nampa, Idaho, and has 24 branch offices in southwestern Idaho and Oregon. Banner has branches in Washington, Oregon and Idaho, including seven in Whatcom County.
Banner will pay a total of $197 million in cash and stock to the stock and option holders to complete the deal, according to a joint news release.
The combined company will have $5.2 billion in assets and will be the fourth largest bank headquartered in the Pacific Northwest, as ranked by assets.
"This combination will help us toward our goal of becoming the community bank of choice in the Pacific Northwest. It significantly improves our market share in the Boise market, which is the third largest metropolitan market in the Pacific Northwest, while also expanding our presence in several key Oregon markets," said Mark Grescovich, Banner's president and CEO.
The acquisition will need regulatory approval, as well as approval by the stockholders of Home Federal. The acquisition is expected to close in the first quarter of 2014.
Banner Corporation, the holding company for Banner Bank and Islanders Bank, is headquartered in Walla Walla.