The combination of the two banking institutions will result in a new bank with nine branches in Southern Oregon with a total assets of $710m
PBCO to acquire Oregon-based bank. (Credit: Pixabay/Pete Linforth.)
People’s Bank of Commerce (PBCO) has signed an agreement to acquire Albany-headquartered full service bank Willamette Community Bank.
The combined entity is expected to have $710m in total assets, operating nine branches in Southern Oregon and Willamette Valley markets.
Founded in 2003, Willamette Community Bank has three branches in Albany, Lebanon, and Salem, with $210m in assets, $147m in gross loans held for investment and $181m in total deposits as of 30 September.
The merger transaction is valued at $14.9m and includes Willamette Community Bank receiving 1.2 million shares of PBCO along with $1.5m in cash.
Willamette Community Bank president and CEO Joan Reukauf said: “The Willamette Community Bank team looks forward to joining People’s Bank of Commerce to create a larger combined bank which will be better positioned to meet the needs of our customers and communities and provide greater opportunities for our employees.
“We also believe this combination provides appealing operational scale and improved trading liquidity for our stockholders.”
Subject to other conditions, regulatory approval and approval from the shareholders of both the banks, the deal could be closed in the first quarter of next year.
After the deal’s closure, Joan Reukauf will serve as People’s Bank of Commerce’s area president and executive vice president, chief operating officer.
The three branches of Willamette Community Bank will continue to operate under the name Willamette Community Bank, a division of People’s Bank of Commerce.
Headquartered in Medford, Oregon, People’s Bank of Commerce operates six branches across Southern Oregon. The bank has $500m in total assets, $356m in gross loans held for investment and $432m in total deposits.
The bank has branches in Medford, Ashland, Central Point, Grants Pass and Klamath Falls.