Northrim to buy Oregon's PBCO for $167.3M in all-stock deal
What's the deal? Northrim BanCorp, the Alaska-based holding company of Northrim BankDealroom has a profile for this one. Try Dealroom →, has agreed to acquire PBCO Financial Corporation in an all-stock transaction valued at roughly $167.3 million. PBCO owns People's Bank of CommerceDealroom has a profile for this one. Try Dealroom →, an Oregon state-chartered bank. Northrim will acquire 100% of PBCO's common stock.
The terms: Each PBCO shareholder will receive 1.160 shares of Northrim common stock per PBCO share, or about $32.36 per share based on Northrim's July 21 closing price of $27.90. The deal is expected to qualify as a tax-free reorganisation. PBCO shareholders will own about 21.1% of the combined company.
The expansion: The deal marks Northrim's first out-of-state branch expansion, extending its franchise into Southern Oregon and the Willamette Valley. Northrim frames it as a way to diversify its footprint while keeping its Alaska-based community banking identity.
What's the endgame? The merger lifts the combined asset base above $4 billion. Both banks hold over a quarter of total deposits in non-interest-bearing accounts and carry a total cost of deposits under 1.40%, which Northrim points to as evidence of stable, relationship-driven funding.
The signal: The tie-up reflects continued consolidation among US community banks seeking scale and geographic diversification. For Northrim, buying into growing Oregon markets is a bet that relationship banking can travel beyond its home state.
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