Banner Corp. (BANR) in Walla Walla, Wash., plans to acquire the biggest bank based in Idaho.
The $4.24 billion-asset Banner said Tuesday it has agreed to buy Home Federal Bancorp (HOME) in Nampa, Idaho, for $197 million in cash and stock.
With the addition of the $1 billion-asset Home Federal, Banner would be the fourth-largest banking company in the Pacific Northwest by assets. It would rank among the top 10 holders of deposits in Idaho, Oregon and Washington, the companies said in a press release.
The acquisition "significantly improves our market share in the Boise market, which is the third-largest metropolitan market in the Pacific Northwest, while also expanding our presence in several key Oregon markets, including Bend/Central Oregon, Eugene, Medford and Grants Pass," Mark Grescovich, Banner's president and chief executive, said in the release. "The combination of our two organizations provides the opportunity to create tremendous synergies while offering Home Federal customers a broader product offering, increased lending limits and an expanded branch-delivery system that stretches throughout the Pacific Northwest."
The deal, expected to close in the first quarter, involves $87.6 million in cash and 2.9 million shares of Banner stock. It is priced at 115.5% of Home Federal's tangible book value.
Banner's agreement to buy Home Federal is the latest in what's shaping up to be a rush toward consolidation in the Pacific Northwest. Earlier this month, Umpqua Holdings (UMPQ) in Portland, Ore., announced it would acquire Sterling Financial (STSA) in Spokane, Wash.
Also, Heritage Financial (HFWA) in Olympia, Wash., and Washington Banking (WBCO) in Oak Harbor have expressed their interested in larger deals.