SALEM, Ore.-- Commercial Bancorp, Salem, Ore., said it has signed a letter of intent to acquire Great Western Bank of Dallas, Ore.
The proposed consolidation is subject to the approval of Great Western Bank shareholders as well as federal and state regulators.
Shareholders of Great Western Bank will receive shares of Commercial Bancorp, based on Great Western Bank's adjusted book value at the close of the transaction. It is estimated that closing should occur on or about Dec. 30.
R.B. Tibbatts, president of Commercial, said the acquisition is an extension of Commercial Bank's branch system in the mid-Willamette Valley.
"We think the Dallas area has a bright future, and we believe our community-focused banking style will contribute to the area's economic vitality," Mr. Tibbatts said.
Commercial Bancorp is the holding company for Commercial Bank and Valley Commercial Bank. Commercial Bank had assets of $259 million at May 31 and employs 200 people in 12 offices. Branch offices are pending in the communities of Tigard and Woodburn.
Valley Commercial Bank had assets of $16 million at May 31 and employs 12 people in three offices.
Great Western had assets of $10 million on May 31 and employs nine in its Dallas office.
