CBS, IMCB announce banks' merger

SANDPOINT — Panhandle State Bank officials anticipate a new era of growth following the merger of its parent company, Intermountain Community Bancorp, with Columbia Banking System.

A business move that will lead to a combined $8.2 billion in assets and 150 locations throughout Washington, Oregon and Idaho, the merger will give the companies a combined reach throughout Washington, Oregon and Idaho. The stock and cash transaction is valued at $121.5 million and is expected to close in late 2014 or early 2015.  

According to IMCB CEO Curt Hecker, the merger bodes well for local banking activities — the significant increase in available capital will allow for larger loans and increased community involvement.

“In terms of who we are and what we are, I honestly and emphatically believe (this will allow us) to do so much more for the community than what we’re doing now,” Hecker said.

“This is an opportunity to be a whole lot more (than what we are) and achieve that vision of being a premiere bank,” he added.

According to Melanie Dressel, CEO of Columbia Bank, the merger will provide the foothold it needs to expand into the Inland Northwest. A well-established chain of banks based out of western Washington, Columbia’s leadership identified an Idaho partner as essential to the company’s strategic plans. When considering IMCB as a potential acquisition, they evaluated its location placement, its company culture and its financial standing. The deal will be Columbia’s second-largest acquisition in its history, Dressel said.

Neither Dressel nor Hecker anticipate substantial changes to local banks after the deal closes. That’s largely because both company cultures fit together fairly seamlessly, they said. Like Panhandle State Bank, Columbia Banking System banks have a strong tradition of community involvement, Dressel said. They also maintain similar practices to provide a quality workplace.

“If we’re not a great place to work, we can’t be a great place to bank,” Dressel said.

There will be very little impact to existing Panhandle State Bank locations since the two companies have next-to-no overlap. The only location that will be affected is IMCB’s downtown Spokane branch. It will likely be consolidated into the nearby Columbia Bank location following the closure, since the locations are only two blocks away from each other.

As far as leadership is concerned, one of IMCB’s independent directors will join Columbia’s board after the deal closes. Hecker, meanwhile, will continue managing Columbia’s Idaho expansion locally.

“We’d like to keep decision-making as close to customers as we possibly can,” said Dressel.

IMCB shareholders will have to approve the merger through a vote. They will be entitled to 0.6426 shares of Columbia common stock and $2.29 in cash for each share of Intermountain stock.