Idaho Banking Company to Be Acquired by Banner Corporation
BOISE, ID--(Marketwired - Apr 24, 2014) - Idaho Bancorp (OTCBB: IDBC) ('Holding Company') announced today that it will sell its wholly owned subsidiary, Idaho Banking Company ('Bank') to Banner Corporation ('Banner'). Banner is the holding company for Banner Bank. Banner Bank's financial strength exceeds all state and federal capital standards.
The Holding Company, has signed an agreement pursuant to which Banner will purchase all of the stock and equity interest in the Bank and merge it with and into Banner Bank. The combined company will have approximately $4.5 billion in assets and will be the fifth largest Pacific Northwest headquartered bank as ranked by assets.
President and CEO of Idaho Bancorp and Idaho Banking Company, Jim Latta, commented, "This combination allows us to partner with a strong community bank that is focused on providing great customer service, a deep commitment to the communities where they operate and an excellent environment for employees to perform and advance. We look forward to working with the management team at Banner Bank to better serve and become the bank of choice in Southern Idaho."
To facilitate the transaction, the Holding Company intends to file a voluntary petition in the United States Bankruptcy Court for the District of Idaho under Chapter 11 of the U.S. Bankruptcy Code and to sell the bank in a 363 sale in the bankruptcy.
"This filing affects only the Holding Company. The Bank will not file bankruptcy and will operate separately from the Holding Company. Deposits will continue to be insured to the fullest extent possible by the Federal Deposit Insurance Corporation (FDIC). There will be absolutely no interruption in services to customers, deposits will continue to be accepted, our branches and ATMs will continue to operate as usual and the Bank will continue to deliver on its commitments to loan applicants and vendors throughout the Holding Company's reorganization," Latta said.
Consistent with usual practice, the court will supervise a competitive bidding process for the sale of the Bank. Any competing bidder will be required to recapitalize the Bank at an equivalent level and demonstrate the ability to promptly receive required regulatory approvals.
If Banner is the successful bidder, the agreement calls for it to acquire the Bank from the Holding Company and then merge the Bank which will satisfy all capital requirements imposed by the Bank's federal and state regulators and will position the Bank for future growth and prosperity.
The transaction provides for the payment to the Holding Company of $2.6 million for all of its stock and equity interest in the Bank. Upon closing of the transaction, which is anticipated to take place in the third quarter of 2014, the Bank will be merged into Banner Bank.
The board of directors of the Holding Company has unanimously approved the transaction. The Holding Company intends to ask the court to expedite its approval of the proposed sale and recapitalization of the Bank.
About Idaho Bancorp
Idaho Bancorp is headquartered in Boise, Idaho, and is the parent company of Idaho Banking Company, a state-chartered commercial bank and member of the Federal Reserve System, which was organized in 1996 and operates four branches. At March 31, 2014, Idaho Banking Company had $102.1 million in assets, $60.3 million in loans, and $98.3 million in deposits.
This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected, including but not limited to the following: the concentration of loans of the company's banking subsidiary, particularly with respect to commercial and residential real estate lending; a continued decline in the housing and real estate market, changes in the regulatory environment and increases in associated costs, particularly ongoing compliance expenses and resource allocation needs in response to regulatory rules and guidelines; vendor quality and efficiency; employee recruitment and retention; the company's ability to control risks associated with rapidly changing technology both from an internal perspective as well as for external providers; increased competition among financial institutions; fluctuating interest rate environments; a tightening of available credit, and similar matters. Readers are cautioned not to place undue reliance on the forward-looking statements. Idaho Bancorp undertakes no obligation to publicly revise or update the forward-looking statements to reflect events or circumstances that arise after the date of this release. This statement is included for the express purpose of invoking PSLRA's safe harbor provisions.
