People's Bank of Commerce completes merger with Willamette Community Bank

Medford, Ore.-based People's Bank of Commerce completed its merger with Albany, Ore.-based Willamette Community Bank, effective March 1.

On a combined pro forma basis, People's Bank of Commerce would have total assets of about $742 million as of Dec. 31, 2020, excluding purchase accounting adjustments, with nine branches in the southern Oregon and Willamette Valley markets.

The deal was announced in November 2020, and the total consideration at that time consisted of about 1.2 million People's Bank of Commerce shares and $1.5 million in cash, for a total value of about $14.9 million, or $8.02 per share, based on People's Bank of Commerce's closing stock price on Nov. 4 of $10.85. The two banks in January then revised the terms of the deal, for a total consideration valued at $20.7 million, or $11.16 per share, which is about 100.8% of Willamette Community Bank's tangible book value as of Dec. 31, 2020, and based on People's Bank of Commerce's closing share price on Jan. 21 of $14.20.

Shareholders approved the deal in February.