IMCB officially becomes Columbia Bank

SANDPOINT — Panhandle State Bank may be no more, but company officials say they’re committed to keeping its spirit alive under the banner of Columbia Bank.

With the merger between holding company Intermountain Community Bancorp and Tacoma, Wash.-based Columbia Banking System now complete, PSB officials are in the process of rebranding its locations, including taking down all its old signs, restocking Columbia Bank pens and reprinting forms and papers. According to IMCB CEO Curt Hecker, the transition may replace Panhandle State Bank’s name but not its identity as a community-oriented bank.

“That (balance) is always a challenge for banks to maintain as they grow larger,” Hecker said.

Columbia Bank and Panhandle State Bank officials announced Monday that they had completed the acquisition process after three months of work, resulting in Panhandle State Bank locations’ immediate absorption into Columbia Bank’s branch locations. The transaction completion sees Columbia Bank’s assets sitting at $8.5 billion and its locations increased to 150 throughout Oregon, Washington and Idaho. In accordance with the agreement hammered out earlier this year, Columbia officials appointed former IMCB board chairman Ford Elsaesser to serve on the Columbia board. Other board members will continue working locally in an advisory role.  

For Columbia Bank, Panhandle State Bank’s locations will serve as an entry point into the Idaho market, and a statewide expansion is planned for the long-term future, Hecker said. The increased focus on the Gem State is part of Columbia’s strategy to position itself as a leading Pacific and Inland Northwest financial institution.

Local banks, meanwhile, will benefit from the increased resources and infrastructure that Columbia Bank brings to the table. Hecker said the partnership will bring the growth potential to keep employees happy and authorize bigger business loans.

“Columbia is in a very strong position to loan money,” Hecker said.

“If we’re not in the best environment to grow, we won’t be able to promote that upward mobility (for our employees),” he added.

Given today’s business climate for banking, Hecker believes Panhandle State Bank has achieved as much growth as it realistically could through organic means. That’s especially true in today’s financial climate, where banking regulation and a sluggish economy mean that mergers acquisitions can account for up to 50-percent of potential growth, Hecker said.

“Some people are concerned and rightly so, but I’m confident that this will be the right way to go,” he added.

As for its community presence, Hecker doesn’t anticipate the completion of the merger to impact its relationships with nonprofits and community organizations. When it comes to donations and charitable giving, Hecker expects contributions will remain steady or increase, meaning support for special events won’t drop off — there will just be different name on the list of sponsors. Meanwhile, he doubts most account holders will be hard-pressed to see a difference in the services and friendly assistance they expect, especially since staffing is almost entirely unchanged. That’s primarily why ICB officials chose to merge with Columbia Bank and not a different institution, Hecker said.

“They just came back looking like the perfect fit,” he added.