Northrim to Buy PBCO Financial in $167.3 Million All-Stock Deal
The merger gives Northrim Bancorp its first out-of-state branch expansion, extending the Alaska lender's community banking franchise into Southern Oregon and the Willamette Valley.
Northrim BanCorp, Inc. (NRIM) agreed to acquire PBCO Financial Corporation in an all-stock transaction valued at approximately $167.3 million. The deal marks Northrim's first expansion of its branch network outside Alaska.
Under the terms of the agreement, PBCO shareholders will receive 1.160 shares of Northrim common stock for each share of PBCO common stock they hold. The transaction is expected to close in the fourth quarter of 2026 or early in the first quarter of 2027.
The combination extends Northrim's community banking franchise into Southern Oregon and the Willamette Valley, pushing the combined company's asset base above $4 billion and adding lending capacity and service capabilities. "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," said Mike Huston, Chairman, President, and Chief Executive Officer of Northrim Bank.
The deal continues a run of acquisitions for Northrim, which built out its non-bank lending business through the purchase of Sallyport Commercial Finance, LLC, a factoring and asset-based lending company, in an all-cash transaction valued at approximately $53.9 million that closed in October 2024. That deal was expected to deliver earnings accretion of approximately 15% to Northrim's 2025 operating results, and Sallyport has since become a recurring driver of the bank's purchased receivable income.
The PBCO transaction lands amid a broader wave of consolidation among Western U.S. community banks. First Hawaiian, Inc. (FHB) agreed in July 2026 to acquire TriCo Bancshares (TCBK) in an all-stock deal that would create a combined company with approximately $34 billion in assets and the sixth-largest bank headquartered in the Western U.S., while Columbia Banking System, Inc. (COLB) struck an all-stock agreement in April 2025 to acquire Pacific Premier Bancorp, Inc. (PPBI), forming a roughly $70 billion-asset franchise across the region. Those deals, along with Banner Corporation's (BANR) agreement to acquire Pacific Financial Corporation, signal continued appetite among regional lenders to add scale and deposit franchises through stock-funded mergers.
For Northrim, the PBCO deal builds on a base that has grown from roughly $3.3 billion in assets as of late 2025 to more than $4 billion on a combined basis following the merger. The transaction remains subject to customary closing conditions, including regulatory and shareholder approvals.