UPDATE: Banner Corp. to Purchase Idaho Banking Co. for $2.6M
Banner Corporation ("Banner") (Nasdaq: BANR), the holding company for Banner Bank and Islanders Bank, and Idaho Bancorp (OTCBB:IDBC), the holding company for Idaho Banking Company, today announced the signing of an agreement pursuant to which Banner will purchase all of the stock and equity interests in Idaho Banking Company and merge it with and into Banner Bank. The combined company will have approximately $4.6 billion in assets and will be the fourth largest Pacific Northwest headquartered commercial bank as ranked by assets.
"We are pleased to have Idaho Banking Company join the Banner Bank team," stated Mark Grescovich, Banner's President and Chief Executive Officer. "This transaction presents a unique opportunity for Banner to expand our presence in the Boise market, which is the third largest metropolitan market in the Pacific Northwest. The combination of our two organizations provides the opportunity to create revenue and cost synergies while offering Idaho Banking customers a broader product offering, increased lending limits and an expanded branch delivery system that stretches throughout the Pacific Northwest."
Jim Latta, President and CEO of Idaho Bancorp and Idaho Banking Company, commented, "This combination allows us to partner with a strong community bank that is focused on providing great customer service, a deep commitment to the communities where it operates and an excellent environment for employees to perform and advance. We look forward to working with the management team at Banner Bank to better serve and become the bank of choice in Southern Idaho."
The boards of Banner and Idaho Bancorp unanimously approved the transaction, which is subject to regulatory approval and other customary conditions of closing. The transaction provides for the payment to Idaho Bancorp of $2.6 million for all of its stock and equity interest in Idaho Banking Company, a wholly owned subsidiary company. The purchase agreement contemplates that Idaho Bancorp (the holding company) will file a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code and that the sale will be conducted under Section 363 of the Bankruptcy Code.
The bankruptcy filing by Idaho Bancorp will only affect Idaho Bancorp and will not impact the operations of Idaho Banking Company. Idaho Banking Company will continue to operate separately from Idaho Bancorp and will serve its customers and conduct business as usual with customer deposits insured to the fullest extent allowable by the Federal Deposit Insurance Corporation. Upon closing of the transaction, which is anticipated to take place in the third quarter of 2014, Idaho Banking Company will be merged into Banner Bank.
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