Wells Fargo & Co.'s plans to reduce its branch count in the Pacific Northwest and broader Western region by 900, or 15%, by the end of 2020 could off-load between $1.0 billion and $2.5 billion in deposits in the region, according to a Piper Jaffray & Co. industry note by analysts Matthew Clark, Kevin Barker, Nathan Race and Robert Shone.

The analysts wrote that Wells Fargo has plenty to choose from, with $35 billion in deposits in the Pacific Northwest region, including deposits of $17.8 billion in Washington, $12.3 billion in Oregon and $5.4 billion in Idaho. Wells Fargo "could cast a wider net [and] consider divesting a larger amount, in the $2.5 [billion] range, that would accelerate the process and make sense for another bank or two," the analysts added.

The banks potentially interested in assuming $1 billion in deposits from Wells Fargo in the region are Banner Corp. and First Interstate BancSystem Inc., with First Interstate best positioned in the broader Western region due to an existing presence, the analysts wrote. Both Banner and First Interstate would attain density and an opportunity to leverage the proceeds with lenders already in the footprint, the analysts added.