News Column

Banner comes up short in proposed Idaho bank purchase

July 1, 2014

By Vicki Hillhouse, Walla Walla Union-Bulletin, Wash.

July 01--Banner Corp. won't be acquiring Idaho Banking Company after all.

The Walla Walla-based parent company of Banner Bank and Islanders Bank announced Monday it has terminated its agreement to acquire the state-chartered commercial bank and its four branches.

Banner had proposed to purchase all of the issued and outstanding shares of Idaho Banking through a bidding process in Idaho'sU.S. Bankruptcy Court. The arrangement was announced in April. However, Idaho Banking's highest bid came from another buyer, according to the announcement.

Under terms of the original agreement, consummation of the acquisition was subject to the Bankruptcy Court entering a final sale order with Banner for the purchase of all of the issued and outstanding shares of Idaho Banking.

Banner Corp. will receive reimbursement for its expenses in connection with the terminated transaction.

"While we are disappointed with the outcome of the bidding process and the termination of the transaction, we remain enthusiastic about the opportunities in the Boise market and committed to increasing our presence in Southern Idaho," said Mark Grescovich, Banner president

and CEO, in a prepared statement. "We have been and will continue to be a disciplined buyer in evaluating opportunities to expand our franchise. Unfortunately, the bidding process for Idaho Banking resulted in a price that exceeded the economic benefit to Banner. We will continue to seek transactions that provide a fair value with an upside potential to our shareholders while at the same time executing on our successful client acquisition strategies which have produced significant growth in recent periods."

Vicki Hillhouse can be reached at 509-526-8321, or on Twitter.


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Source: Walla Walla Union-Bulletin (WA)

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