Banner Completes $186.8 Million Pacific Financial Stock Merger

The Tip Desk · October 22, 2026 · 2 min read

The all-stock deal lifts Banner into a combined franchise of about $18 billion in assets and densifies its Western Washington and Western Oregon footprint.

Banner Corporation (BANR), the parent of Banner Bank, completed its all-stock acquisition of Pacific Financial Corporation on September 1, 2026, paying total consideration of $186.8 million.

Each outstanding share of Pacific Financial common stock converted into 0.2633 shares of Banner common stock, with cash in lieu of fractional shares. Immediately after closing, former Pacific Financial shareholders own approximately 7% of the combined company and existing Banner shareholders approximately 93%.

The deal was first announced April 30, 2026, when Banner and Pacific Financial entered a definitive merger agreement. At the time, Banner said the combined company was expected to have approximately $18 billion in assets. Banner had assets of $16.34 billion as of March 31, 2026. Pacific Financial, the holding company for Bank of the Pacific, had total assets of $1.26 billion at June 30, 2026.

“During the third quarter, we completed the merger with Pacific Financial Corporation, the holding company of Bank of the Pacific,” said Mark Grescovich, President and CEO.

Grescovich said the merger expands Banner’s presence and density in Western Washington and Western Oregon markets and gives Bank of the Pacific customers broader product offerings and technology tools, increased commercial lending limits and an expanded branch delivery system. He also described Bank of the Pacific as a financially strong community bank with exceptional core deposits and said the combination is a complementary fit strategically and culturally.

Bank of the Pacific is a 55-year-old Washington state-chartered commercial bank. At March 31, 2026, it had assets of $1.29 billion, a loan portfolio of $762 million and a deposit base of $1.14 billion. At June 30, 2026, it operated eighteen branches—fifteen in Washington and three in Oregon.

Banner Bank is also a Washington state-chartered commercial bank with more than 135 years of history and a network in Washington, Oregon, Idaho and California. Pacific Financial’s President and CEO Denise Portmann joined the Banner executive team at closing. Grescovich said she will continue to play a critical role in integrating the two banks.

Systems integration is planned for November, when operations are to move under the Banner brand. At that point, legacy Bank of the Pacific clients are to benefit from the broader product offering, higher lending limits and expanded branch system beyond their existing markets.

All regulatory approvals required for the merger had been received before the September 1 close, including a Federal Reserve letter stating it did not object to Banner’s requested waiver of the application requirement.