Banner Corp. in Walla Walla, Wash., has agreed to buy Siuslaw Financial Group in Florence, Ore.
The $4.7 billion-asset Banner will pay about $58 million, or $14.03 a share, in cash and stock for the $360 million-asset Suislaw. Roughly 90% of the consideration will be common stock. Banner said in a press release late Thursday that it expects to complete the transaction in the latter part of this year.
"This transaction presents a unique opportunity for us to expand our presence in Oregon, including our entry into Eugene which is the second largest metropolitan market in the state," Mark Gresovich, Banner's president and chief executive, said in the release. "The combination... provides the opportunity to create revenue and cost synergies while offering Siuslaw customers a broader product offering, increased lending limits and an expanded branch delivery system."
Banner said it expects the transaction to be immediately accretive to earnings per share, excluding one-time transaction expenses.
Banner was advised by McAdams, Wright Ragen, Breyer & Associates and Silver, Freedman, Taff & Tiernan. Siuslaw was advised by Sandler O'Neill and Lane Powell.
Banner has been a disciplined acquirer in recent years. It bought six branches in southwestern Oregon earlier this year as part of Umpqua Holdings purchase of Sterling Financial. It lost out on bids to buy Idaho Banking in Boise and Home Federal Bancorp in Nampa, Idaho, after other banks were willing to pay more money.