WALLA WALLA, Wash. — Banner Corp., the parent company of Banner Bank and Islanders Bank, announced Tuesday, July 21, the consolidation of the two financial institutions.

Banner Bank, which has about $14.4 billion in assets, will merge Islanders with and into Banner pending regulatory approval. Islanders has been part of Banner Corp. for 10 years.

“It is the right time to bring the two banks together,” Banner CEO and President Mark Grescovich said in a news release.

“In recent years Banner Bank has enjoyed strong growth in the North Puget Sound region to the point where the two banks now have intermixed footprints. Merging the banks together will capitalize on Banner Bank’s strong brand awareness while providing expanded products and services to Islanders customers and realizing natural efficiencies associated with this type of consolidation.”

Islanders Bank operates three branches in the San Juan Islands region of Washington — Friday Harbor on San Juan Island, Eastsound on Orcas Island and Lopez Village on Lopez Island. All three branches will remain open after converting to Banner Bank.

Banner Bank currently operates 173 branches, 50 of which are in Oregon.

“Banner has tremendous respect for our island operations and approach to customer service,” Islanders Bank President Brad Williamson said in the release. “And I know Islanders’ customers will receive the same level of service they’ve come to expect, as well as more locations to choose from as they travel throughout the region and the West.”

“Our customers will benefit from Banner Bank’s resources and expanded product and service offerings, while our team remains part of an outstanding community bank.”

Banner Corp. leadership expects the transition to be smooth. Full integration is expected to be complete in the first quarter 2021, pending federal approval.