Heritage Financial has agreed to acquire Premier Commercial Bancorp in an all-stock transaction valued at approximately $88.6m, or $15.12 per share.
For each share of Premier common stock, its shareholders will receive 0.4863 shares of Heritage common stock.
Premier Commercial Bancorp is the parent company of Premier Community Bank, which was founded in 1999. The bank manages a network of six branches and had $401m in total assets, $344m in total loans and $331m in total deposits as of 31 December 2017.
Upon completion of transaction, Heritage will have total assets more than $5bn on a pro forma basis including the impact of the Premier acquisition.
Heritage Financial president and CEO Brian Vance said: “The partnership with Premier is an excellent way for us to expand our franchise in the Portland market. Heritage has significant momentum in Portland and Seattle, which are two of the most attractive banking markets in the Pacific Northwest.”
Premier Commercial Bancorp president and CEO Rick Roby added: “We believe the combination of Premier and Heritage will be of significant value to our shareholders, customers and employees. We are pleased to partner with an organisation that shares our dedication to provide high level personal service.”
The agreement, which has been approved by the boards of directors of Heritage and Premier, is pending regulatory approvals, and certain other customary closing conditions. The transaction is slated to be concluded during the third quarter of 2018.