LYNNWOOD — Another local bank will be changing the name on its storefronts.
Lynnwood-based Prime Pacific Bank is the latest local lender caught up in the churn that’s consumed several community banks since the 2008 recession. The list includes: Frontier Bank, First Heritage Bank, North County Bank, City Bank, Cascade Bank and Whidbey Island Bank.
Prime Pacific survived the economic downturn, but was put under direct oversight by federal regulators from 2009 to 2015.
It had negotiated a sale last year to Coastal Community, the biggest Snohomish County-based bank. However, Prime Pacific’s shareholders rejected the sale.
This time, though, they approved the sale to Bend, Oregon-based Bank of the Cascades. The deal was announced this past spring and closed Aug. 2.
The purchase is the third in two years for Bank of the Cascades and part of its aggressive growth strategy. Prime Pacific’s three branches in Lynnwood, Kenmore and Mill Creek give it a foothold in the Puget Sound market. Last year, it opened a five-person commercial lending office in Seattle.
“Seattle represents an exciting market where we see the opportunity to expand the Cascade brand and believe Prime Pacific Bank is the perfect complement to our existing downtown Seattle commercial banking center as we strive to build a significant local presence with strong market share,” Cascade Chief Executive Terry Zink said in a statement.
Prime Pacific had about $122.9 million in assets, $100.7 million in net loans, and $101.3 million in total deposits at the end of June.
Customers accounts should all be rolled over to Cascade by late October. Cascade plans to keep on all Prime Pacific employees, according to the company.
Bank of the Cascades has been on a recent growth spurt. Earlier this year, it crossed the Columbia River in a deal to take over several former Bank of America branches, including three in Southwestern Washington communities: Cathlamet, Raymond and Westport. The purchase also included 12 locations in Oregon. In 2014, it entered Idaho after buying Home Federal Bank.
Cascade’s goal is to expand to $5 billion in assets. That is double its size this time last year. It currently has nearly $3 billion in assets, based on its most recent filing with the Securities and Exchange Commission.
With Prime Pacific’s sale, the remaining Snohomish County-based banks are Coastal Community Bank and Mountain Pacific Bank in Everett; The Bank of Washington, Unibank and Pacific Crest Bank in Lynnwood; and 1st Security Bank in Mountlake Terrace.
Dan Catchpole: 425-339-3454; dcatchpole@heraldnet.com; Twitter: @dcatchpole.
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