Walla Walla-based Banner Bank has officially brought another Washington state financial institution under its wing. 

Banner Corporation recently closed on its purchase of Pacific Financial Corporation, the holding company of Aberdeen-based Bank of the Pacific, in an all-stock transaction. The acquisition means Banner now has about $18 billion in assets. 

“We are pleased to announce the completion of the merger, which expands our presence and density in attractive Western Washington and Western Oregon markets,” said Mark Grescovich, Banner president and CEO, in a statement. “Bank of the Pacific is a highly respected, financially strong community bank with exceptional core deposits making this combination a complementary fit both strategically and culturally.” 

Bank of the Pacific has 18 branches, most of them concentrated on or near the Washington coast, with some around Bellingham and a few in Oregon’s Willamette Valley. It has assets of $1.29 billion compared to Banner’s $16.34 billion.  

Banner operates 135 bank branches across four Western states, with four branches in the Tri-Cities.  

Under the terms of the merger, Pacific Financial shareholders received 0.2633 shares of Banner common stock in exchange for each share of Pacific Financial common stock. Based on the closing price of $66.25 per share of Banner common stock on April 29, the implied value of the merger consideration to be received by Pacific Financial shareholders is equal to $17.44 per share, or about $177 million.