X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LAKE OSWEGO, OR-The publicly traded parent company of Banner Bank, Walla Walla, WA-based Banner Corp. says it has signed an agreement to acquire Oregon Business Bank of Lake Oswego in an all cash transaction valued at approximately $10 million. Approved by the companies’ boards but not yet by regulators or shareholders, the transaction is expected to close by the end of the fourth quarter of 2001.

In explaining the decision, Banner Corp. president/CEO Gary Sirmon says Oregon Business Bank was the fastest growing financial institution in Oregon in 2000, and its headquarters is located a few blocks from Banner’s construction and mortgage lending subsidiary, Community Financial Corporation. “The addition of Oregon Business Bank to our franchise broadens our presence in the important Portland market,” says Sirmon.

Oregon Business Bank is a state-chartered institution that is not publicly traded. James W. Shires, president of Oregon Business Bank, says the merger will allow Oregon Business Bank to offer additional deposit products, larger lending limits, improved technology and administrative efficiencies.

Opened in October 1999, Oregon Business Bank is a commercial community bank with $41.5 million in assets, $32.5 million in gross loans, $35.8 million in deposits and shareholders’ equity of $4.7 million at August 31, 2001. The purchase price represents approximately 212% of book value at August 31, 2001.

Banner Corp’s Banner Bank, a Washington state chartered commercial bank operates a total of 38 branch offices and six loan offices in 18 counties in Washington, Oregon and Idaho. “Given Oregon Business Bank’s rapid growth and experienced staff, complemented by CFC’s current customer base, we expect this acquisition to be immediately accretive to net income and ROE,” said Sirmon. “Banner Bank has been considering a full-service banking facility in the Lake Oswego area since we opened CFC. When this opportunity arose, we viewed it as a way to meet our objective in a timely and efficient manner.”

Banner’s share price on Wednesday afternoon was up $0.70 from Tuesday’s close to $18.10 per share in afternoon trading on the Nasdaq National Market. The share price is recovering after dropping from $22.50 on Sept. 10, the day before the market shut down for a week, to $15.15 on Sept. 21 before beginning its rebound.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.