Banner Corporation, the holding company for Banner Bank, has entered into a definitive merger agreement to acquire Pacific Financial Corporation, the holding company for Bank of the Pacific, in an all-stock transaction valued at approximately $177 million in aggregate. Following the closing, the combined company is expected to have approximately $18 billion in assets. The transaction is expected to close in the third quarter of 2026.
Bank of the Pacific is a 55-year-old Washington state-chartered commercial bank with $1.29 billion in assets, a loan portfolio of $762 million, and a deposit base of $1.14 billion, operating 18 branches in Western Washington and Northern Oregon. Banner Bank has been serving businesses and consumers for more than 135 years across Washington, Oregon, Idaho, and California, with $16.34 billion in assets. Pacific Financial shareholders will receive 0.2633 shares of Banner common stock for each share, representing an implied value of $17.44 per share.
Banner expects the transaction to be immediately accretive to 2027 earnings per share. Denise Portmann, President and CEO of Bank of the Pacific, is expected to join the Banner Bank executive team upon completion.
Support: Pacific Financial was advised by Piper Sandler as financial advisor and Miller Nash as legal counsel. Banner was advised by BofA Securities as financial advisor and Ballard Spahr as legal counsel.
KEY QUOTES:
“Bank of the Pacific is a highly-respected, financially strong community bank with exceptional core deposits, and we’re pleased they selected Banner as their merger partner. This transaction expands our presence and density in attractive Western Washington and Western Oregon markets while offering Bank of the Pacific customers broader product offerings and technology tools, increased commercial lending limits and an expanded branch delivery system.”
Mark Grescovich, President and CEO, Banner Corporation
“Combining with Banner represents an exciting next chapter, creating tremendous opportunities for our employees, customers and shareholders. Our organizations share many important values — we are both financially strong, take a relationship-based approach to banking, are deeply committed to the communities we serve, trust and empower our employees, and take great care in delivering outstanding customer service.”
Denise Portmann, President and CEO, Bank of the Pacific
