Northrim still expects its Oregon bank purchase to close around Jan. 1

Northrim BanCorp still expects to close its purchase of an Oregon bank, its first move outside Alaska, on or about Jan. 1, the Anchorage bank told federal securities regulators Friday.

The deal would turn a bank with $3.58 billion in assets and 21 branches, all in Alaska, into one with about $4.2 billion and branches in southern Oregon and the Willamette Valley, according to Northrim's quarterly report. The company calls the purchase a strategic investment to spread out where it does business "while preserving its Alaska-based community banking identity."

The bank being bought is People's Bank of Commerce, founded in 1998 and based in Medford. Its other locations include Ashland, Eugene, Grants Pass, Klamath Falls and Salem, according to the bank's latest earnings release.

Northrim announced the deal in July, valuing it at the time at about $167 million, all in stock. Shareholders of both companies approved it Oct. 20. Shareholders of the Oregon bank's parent company, PBCO Financial, would get 1.16 Northrim shares for each of theirs and end up owning about 21% of the combined company.

Northrim spent $993,000 on the deal from July through September, almost all of it on professional and outside services. People's Bank reported $648,000 in professional costs tied to the merger in the same quarter, on $2.6 million in profit. Its president and CEO, Julia Beattie, said in the Oct. 21 release that the results showed "the momentum we have as we continue towards completing our merger."

Northrim's own quarterly profit was $14.4 million, down from $27.1 million a year earlier. The report says that was mostly because of a $13.9 million drop in gains from asset sales at Pacific Wealth Advisors and a $6 million increase in money set aside for loans that may not be repaid. In October, Northrim disclosed an $8.8 million charge tied to one specialty finance customer.

The banks applied for regulatory approval Sept. 3. Northrim's filings warn that approvals could take longer or cost more than expected, or that the merger might not close at all. Either company can walk away if the deal hasn't closed by April 30, 2027, a deadline that can be pushed to June 30 in some cases.