Sterling to acquire Clarkston-based bank

Sterling Financial Corp. has reached an agreement to acquire FirstBank NW Corp. — a Clarkston, Wash.-based bank with 21 branches in Washington, Oregon and Idaho.

If FirstBank shareholders and government regulators approve the merger, the Spokane-based Sterling will pay about $169.6 million in a combination of common stock and cash for FirstBank NW Corp. This is the 15th acquisition for the 24-year-old financial institution.

Heidi Stanley, chief operating officer for Sterling Savings Bank, said the deal will strengthen its presence in the Pacific Northwest and increase the number of branches it operates to 164.

“We are really excited about this challenge and the opportunity that this partnership with FirstBank will give us,” Stanley said.

Although there will be some branch consolidation, she said, FirstBanks’ 290 employees will either retain their branch positions or be offered other jobs within the corporation.

When completed, the transaction — coupled with the pending acquisition of Lynnwood Financial Group, Inc. — will increase Sterling Financial Corp.’s assets to about $9.2 billion, including loans totaling $6.3 billion. Additionally, the corporation’s deposits will total $6.1 billion.

FirstBank was an attractive partner because it has a similar banking philosophy and solid reputation, she said, adding, “We’ve been competing with them head-on for many years now.”

The move strengthens the bank’s position in key Northwest markets, including Idaho. After the merger is complete, Stanley said, Sterling’s deposit market ranking will move from 16th to 5th among banks statewide.

“What it’s doing is intensifying our presence in markets that we’re already in,” Stanley said.

The deal adds branches in Hayden, Coeur d’Alene and Post Falls and will double the number of Sterling Savings Banks in Boise, Idaho, to four.

“In that particular market (Boise) you need to have a little bulk to be effective,” she explained.

The merger is expected to close late this year. The banks will combine, early next year, when branch closures would occur, she said.

Sterling Financial Corp. is also in the midst of acquiring Lynnwood Financial Group, Inc., which specializes in residential mortgages. That deal will likely finalize in July, she said, and add 15 to 20 offices.