Banner Corporation completed its acquisition of Pacific Financial Corporation on September 1, 2026, with Banner as the surviving entity. Each share of Pacific Financial common stock was converted into 0.2633 shares of Banner common stock, resulting in approximately 2,654,563 new shares issued and a post-closing ownership split of roughly 7% for former Pacific shareholders and 93% for existing Banner shareholders. The merger expands Banner's presence in Western Washington and Oregon markets. At June 30, 2026, Pacific Financial held $1.26 billion in total assets and operated fifteen branches. Denise Portmann, formerly CEO of Bank of the Pacific, joined Banner Bank as an executive vice president to lead integration efforts. Systems integration is scheduled for November. Banner Corporation operates as a bank holding company providing commercial banking services including deposits and various loan products across four Western states.

Banner Corporation announced that it has received all necessary regulatory approvals for its previously disclosed merger with Pacific Financial Corporation. Specifically, the Federal Reserve issued a letter stating it does not object to Banner's waiver of the application requirement for the transaction. Consequently, both parties anticipate closing the merger on September 1, 2026, subject to customary closing conditions. This development removes a key regulatory hurdle and sets a definitive timeline for the combination of the two banking entities.

Banner Corporation announced that the Washington State Department of Financial Institutions approved its proposed merger with Pacific Financial Corporation on August 11, 2026. Subsequently, the Federal Deposit Insurance Corporation granted approval for the transaction on August 12, 2026, subject to final consent from the Federal Reserve. Pacific Financial shareholders formally ratified the Merger Agreement during a special meeting held on that same date. The parties anticipate closing the merger in the third quarter of 2026, pending satisfaction of remaining regulatory conditions and other closing requirements. Banner Corporation operates as a financial holding company providing banking services.

Banner Corporation reported second quarter 2026 net income of $48.9 million, or $1.43 per diluted share, compared to $54.7 million in the prior quarter. Net interest income rose to $153.7 million from $150.2 million in the preceding quarter, driven by net interest margin expansion to 4.13%. The company recorded a $3.8 million provision for credit losses. Additionally, the Board declared a regular quarterly cash dividend of $0.52 per share, payable August 14, 2026, to shareholders of record as of August 4, 2026. The company is also proceeding with its all-stock acquisition of Pacific Financial Corporation, expected to close in the third quarter of 2026. Banner Corporation is a bank holding company providing commercial banking services.