Sterling Financial to Sell Three Branches to Bank of the Pacific

Sterling Financial (STSA) is slimming down in the Pacific Northwest.

The Spokane, Wash., company has agreed to sell three branches to Pacific Financial (PFLC) in Aberdeen, Wash. The branches are in Astoria, Ore., Seaside, Ore., and Aberdeen.

Bank of the Pacific would acquire approximately $50 million of deposits, $6 million of performing loans and some other assets and liabilities. It would pay a premium of approximately $1.2 million, or 2.77% of core in-market deposits.

Bank of the Pacific, with assets of $644 million, has 16 branches in Washington and one in Oregon.

The deal is expected to close in the second quarter, pending regulatory approval.

Last week Sterling announced that it missed its fourth-quarter earnings expectations because of a charge for early debt repayment. Its main banking unit, Sterling Savings Bank, has $9.2 billion of assets and 191 branches in Washington, Oregon, Idaho and California.