Banner Corp. is expanding east.
The parent company of Walla Walla’s Banner Bank and of Islanders Bank has entered into an agreement to purchase Idaho Banking Company, officials announced Thursday.
Banner Corp. and Idaho Bancorp, the holding company for Idaho Banking Company, announced the signing of an agreement that will pave the way for Banner to purchase all stock and equity interests in the Boise-based bank in a $2.6 million deal.
The acquisition, subject to regulatory approval and other customary conditions, is expected to close at the end of the third quarter.
The combination of the two will give Banner about $4.6 billion in assets. It will be the fourth-largest Pacific Northwest headquartered commercial bank based on assets, the announcement said.
As part of the agreement, Idaho Bancorp will file a voluntary petition for relief under Chapter 11 bankruptcy. The sale will take place under Section 363 of the Bankruptcy Code. The filing will only affect the holding company — not Idaho Banking Company, which will continue to operate separately.
“We are pleased to have Idaho Banking Company join the Banner Bank team,” said Banner President and CEO Mark Grescovich in a prepared statement. “This transaction presents a unique opportunity for Banner to expand our presence in the Boise market, which is the third-largest metropolitan market in the Pacific Northwest. The combination of our two organizations provides the opportunity to create revenue and cost synergies while offering Idaho Banking customers a broader product offering, increased lending limits and an expanded branch delivery system that stretches throughout the Pacific Northwest.”
Idaho Bancorp and Idaho Banking Company President and CEO Jim Latta said: “This combination allows us to partner with a strong community bank that is focused on providing great customer service, a deep commitment to the communities where it operates and an excellent environment for employees to perform and advance. We look forward to working with the management team at Banner Bank to better serve and become the bank of choice in Southern Idaho.”
Idaho Banking Company is a state-chartered commercial bank organized in 1996. It operates four branch offices. As of the end of December it had $100 million in assets, $62 million in loans and $96 million in deposits.
Vicki Hillhouse can be reached at 509-526-8321, email@example.com or on Twitter.