Banner to Acquire Pacific Financial in $177 Million All-Stock Deal
The combination deepens Banner's footprint across Western Washington and Oregon, adding a 55-year-old community bank with $1.29 billion in assets.
Banner Corporation (BANR) agreed to acquire Pacific Financial Corporation in an all-stock transaction valued at approximately $177 million, the companies announced. The deal is expected to close in the third quarter of 2026.
Under the merger agreement, Pacific Financial shareholders will receive 0.2633 shares of Banner common stock for each share they hold. Based on Banner's closing price of $66.25 a share on April 29, 2026, the exchange ratio implies a per-share value of $17.44 for Pacific Financial stock. The transaction is structured as a tax-free reorganization.
"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," said Mark Grescovich, Banner's president and chief executive. He added that the combination expands Banner's presence and density in Western Washington and Western Oregon while offering Bank of the Pacific customers broader product offerings, technology tools, increased commercial lending limits and an expanded branch delivery system.
Bank of the Pacific, a 55-year-old Washington state-chartered commercial bank, operates 18 branches and offices across Western Washington and Northern Oregon. As of March 31, 2026, the bank held $1.29 billion in assets, a loan portfolio of $762 million and a low-cost deposit base of $1.14 billion. Upon closing, Bank of the Pacific president and chief executive Denise Portmann is expected to join Banner's executive team.
The deal follows a broader wave of Pacific Northwest bank combinations. Columbia Banking System agreed to acquire Pacific Premier Bancorp in April 2025 in an all-stock transaction that would create a roughly $70 billion-asset franchise spanning the Western U.S.. More recently, Northrim Bancorp reached a deal to buy PBCO Financial, the parent of People's Bank, in a transaction expected to close by early 2027.
Following the merger, Pacific Financial shareholders are expected to own approximately 7 percent of the combined company, with Banner shareholders holding roughly 93 percent. Banner projected the transaction would be immediately accretive to 2027 earnings per share, excluding one-time transaction expenses. The combined entity is expected to have approximately $18 billion in assets. Both boards unanimously approved the deal, which remains subject to Pacific Financial shareholder approval and regulatory clearance. BofA Securities served as financial advisor to Banner, while Piper Sandler advised Pacific Financial.