MEDFORD, Ore. (Aug. 16, 2026) — Northrim BanCorp Inc., the parent company of Alaska-based Northrim Bank, has agreed to acquire Medford-based People’s Bank of Commerce in an all-stock transaction valued at approximately $167.3 million, the companies announced recently.
The deal would mark Northrim’s first expansion of its branch network outside Alaska and would significantly increase the size of the combined banking organization, bringing its total assets to approximately $4.2 billion.
Under the agreement, shareholders of PBCO Financial Corp., the parent company of People’s Bank, will receive 1.160 shares of Northrim common stock for each share of PBCO common stock. Based on Northrim’s closing share price of $27.90 on July 21, the consideration was valued at approximately $32.36 per PBCO share.
The value of the transaction will fluctuate with Northrim’s stock price. Upon completion, PBCO shareholders are expected to own approximately 21.1% of the combined company.
People’s Bank operates 11 branches across Southern Oregon and the Willamette Valley. Those branches are expected to operate under the Northrim name, while continuing to be managed by the existing local People’s Bank team.
“This transaction marks a significant strategic investment to diversify Northrim’s geographic footprint while preserving our Alaska-based community banking identity,” the companies said in announcing the agreement.
The merger combines two community banks that emphasize relationship-based banking and local decision-making. The companies said more than one-quarter of deposits at both institutions are non-interest-bearing and that their combined cost of deposits is below 1.40%.
Customers of People’s Bank are expected to gain access to Northrim’s digital banking platform, retail banking services and expanded treasury management offerings. Northrim customers are expected to benefit from greater lending capacity and additional expertise following the combination.
“We are excited to welcome People’s Bank to the Northrim family,” said Mike Huston, chairman, president and CEO of Northrim Bank. “Both of our organizations share a core value that community banking is built on strong relationships, local expertise, and commitment to our communities.”
Huston said the combined organization expects to invest in employees, technology, customer experience and community organizations while maintaining personalized service and local decision-making.
Julia Beattie, president and CEO of PBCO, said the agreement would give People’s Bank customers access to additional products and resources while maintaining the relationships the bank has developed in its communities.
“Partnering with Northrim gives us the opportunity to enhance the products, services, and resources available to our customers while maintaining the personal relationships and local decision-making that define People’s Bank,” Beattie said.
As of June 30, People’s Bank had approximately $776.6 million in assets, $570.1 million in gross loans, $610.1 million in deposits and $100.2 million in stockholders’ equity.
Following the merger, the combined company is expected to have approximately $3 billion in loans and $3.5 billion in deposits.
People’s Bank of Commerce was founded in 1998 and is headquartered in Medford. Its branch network includes locations in Albany, Ashland, Central Point, Eugene, Grants Pass, Jacksonville, Klamath Falls, Lebanon, Medford and Salem.
The bank also owns Steelhead Finance, a Medford-based accounts receivable factoring company serving the transportation industry nationwide.
Northrim Bank currently operates 21 branches throughout Alaska. The company has expanded beyond traditional community banking through subsidiaries and divisions focused on factoring, asset-based lending and mortgage services, as well as its acquisition of specialty finance company Sallyport Commercial Finance.
The merger remains subject to customary closing conditions, including regulatory approval and approval from shareholders of both companies. The transaction is expected to close in the fourth quarter of 2026 or early in the first quarter of 2027.
A system conversion is anticipated in the fourth quarter of 2027.
As part of the transaction, one PBCO director will join the boards of Northrim BanCorp and Northrim Bank.
Both companies’ boards unanimously approved the merger agreement.
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