Banner announces plans to merge with Skagit Bank

The parent company of Banner Bank has announced plans to merge with Skagit Bancorp. in an all-stock transaction valued at $191.1 million.

Skagit shareholders will receive 5.6664 shares of Banner common stock in exchange for each share of Skagit common stock. The merger is expected to be finalized late in the year. The combined company will have about $11.4 billion in assets.

Skagit has 12 bank locations along the Interstate 5 corridor from Seattle to the Canadian border.

Walla Walla-based Banner Corp. is the parent company for Banner Bank and Islanders Bank.

Banner Corp. reported second-quarter income of $32.4 million, or $1 per share. The results compared to $28.8 million, or 89 cents per share, for the second quarter of 2017.

The sale of the Poulsbo branch and two former business locations were included in the recent quarterly results, Banner officials said.