Banner to Buy Six Oregon Branches from Sterling

Banner Corp. (BANR) in Walla Walla, Wash., has agreed to buy six branches in southwestern Oregon from Sterling Financial (STSA) in Spokane, Wash.

Sterling also agreed to pay Banner $7 million to take over the branches, which are set to change hands after Sterling is sold to Umpqua Holdings (UMPQ) in Portland, Ore. That deal is expected to close in June.

The $4.4 billion-asset Banner will also pick up $226 million in deposits and $95 million in loans from Sterling.

"This transaction presents a unique opportunity for Banner to expand our Pacific Northwest franchise, specifically in Oregon, through an existing presence with a significant market share," Mark Grescovich, Banner's president and chief executive, said in a press release Wednesday. "The acquired branches collectively will capture a 28% share of the Coos County market."

Last year, Banner agreed to buy Home Federal (HOME) in Nampa, Idaho, but was later unseated in the deal by Cascade Bancorp (CACB) in Bend, Ore.