Banner Corp. is on the grow with the announcement of an agreement to acquire six Oregon branches of Sterling Savings Bank.
The Walla Walla parent company of Banner Bank announced Wednesday it has entered into an agreement to acquire five Sterling branches in Coos County and a sixth in Douglas County. The branches have combined deposits of about $226 million and $95 million in loans, according to the announcement.
As part of the deal, filed publicly Wednesday, Banner will take on deposit liabilities, related performing loans, the six properties at net book value and six ATMs. Banner will receive $7 million to acquire the branches.
The acquisition is subject to consummation of a previously announced merger between Sterling Financial Corp., the parent company of Spokane-based Sterling Savings Bank, and Umpqua Holdings Corp., regulatory approval and customary closing conditions. It is expected to be complete in June.
“This transaction presents a unique opportunity for Banner to expand our Pacific Northwest franchise, specifically in Oregon, through an existing presence with a significant market share,” said Banner President and Chief Executive Officer Mark Grescovich in a prepared statement. He said the branches collectively represent 28 percent of the market share in Coos County.