Northrim BanCorp has agreed to acquire PBCO Financial Corporation in an all-stock transaction valued at approximately $167.3 million, expanding the Alaska-based community bank into Oregon.
Under the definitive merger agreement, PBCO will merge into Northrim, while PBCO subsidiary People’s Bank of Commerce will merge into Northrim Bank. Northrim will acquire all outstanding PBCO common stock.
PBCO shareholders will receive 1.160 shares of Northrim common stock for each PBCO share they own. Holders of PBCO restricted stock and restricted stock units will receive the same exchange ratio, while phantom stock units will be paid in cash.
The consideration was valued at approximately $32.36 per PBCO share based on Northrim’s July 21, 2026, closing price of $27.90. Because the transaction is entirely stock-based, the final value will change with Northrim’s share price. PBCO shareholders are expected to own approximately 21.1% of the combined company after closing.
The transaction represents Northrim’s first branch expansion outside Alaska. People’s Bank operates 11 locations across Southern Oregon and the Willamette Valley, which will operate under the Northrim name after the merger. The existing local team is expected to continue managing the Oregon operations.
The combined company is expected to have approximately $4.2 billion in assets, $3 billion in loans and $3.5 billion in deposits based on June 30, 2026, financial information. PBCO had approximately $776.6 million in assets, $570.1 million in gross loans and $610.1 million in deposits at that date.
Both institutions have relationship-based deposit franchises, with more than one-quarter of deposits held in non-interest-bearing accounts and total deposit costs below 1.40%. Northrim expects the combination to increase lending capacity, broaden its services and diversify its geographic footprint while maintaining its Alaska-based identity.
People’s Bank customers are expected to gain access to Northrim’s digital banking platform, retail services and broader treasury management capabilities. Northrim customers could benefit from additional lending capacity and People’s Bank’s expertise in Oregon markets.
One PBCO director will join the boards of Northrim BanCorp and Northrim Bank following the merger.
The boards of both companies unanimously approved the transaction. Closing is expected in the fourth quarter of 2026 or early in the first quarter of 2027, subject to regulatory approvals, approval from both companies’ shareholders and other customary conditions. The banking systems are expected to be converted in the fourth quarter of 2027.
Hovde Group served as Northrim’s financial advisor, and Accretive Legal provided legal counsel. D.A. Davidson advised PBCO financially, while Hunton Andrews Kurth served as its legal counsel.
KEY QUOTES:
“We are excited to welcome People’s Bank to the Northrim family. Both of our organizations share a core value that community banking is built on strong relationships, local expertise, and commitment to our communities.”
“Together, we expect to be able to invest more in our people, technology, customer experience, and community organizations, while preserving the personalized service and local decision-making that have defined our banks for decades.”
Mike Huston, Chairman, President and CEO of Northrim Bank
“Partnering with Northrim gives us the opportunity to enhance the products, services, and resources available to our customers while maintaining the personal relationships and local decision-making that define People’s Bank.”
“Together, we believe we will be better positioned to support the continued growth and success of our customers and communities we serve.”
Julia Beattie, President and CEO of PBCO Financial Corporation
