Stephen Rosenman
Long/short equity, Deep Value, special situations

Banner Corporation: Profiting From The Umpqa-Sterling Merger

Pacific Northwest regional Banner Corporation (NASDAQ:BANR) hit the acquisition jack pot last week. Because of a pending merger with Umpqa, Sterling Financial (NASDAQ:STSA) was forced to hand 6 branches - along with their $226 million in deposits and $95 million in loans - to Banner. Remarkably, Sterling is paying Banner $7 million to take over these branches. Talk about being in the right place at the right time.

Crazy as it sounds, Banner is getting paid by Sterling Financial to take 6 highly profitable banking offices (99.9% of loans accruing with average yield 5.17%) and all their deposits and loans. As yet, it is not clear if these branches include the land and buildings (over half...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
PRO Top long ideas returned 21.7% in 2016**
"As a PRO member, we get uniquely valuable perspective that go beyond our quantiative analysis... We rely on PRO to get beyond the numbers quickly and add much needed perspective. It keeps me ahead of the next big thing. - Mark Choate, Malaga Cove Capital"
Mark Choate, Malaga Cove Capital
"Contributors (writers and commentators), often have a long history in the secuirities they opine on and some are clearly well positioned industry participants with detailed industry views that can help provide color on where the skeletons are buried in a particular secuirity and/or industry."
Jim Roumell, Roumell Asset Management
Annual subscriptions may be cancelled for any reason within the first 30 days and receive a full and prompt refund. Details