Pacific Financial Corporation (OTCQX: PFLC), the holding company for Bank of the Pacific, announced that its shareholders voted to approve a merger agreement with Banner Corporation at a special meeting held Aug. 12, 2026.

The Agreement and Plan of Merger, dated April 30, 2026, calls for Pacific Financial to merge with and into Banner Corporation, with Banner surviving the combined entity. The two companies expect the transaction to close in the third quarter of 2026, pending final regulatory approval and satisfaction of other closing conditions.

Pacific Financial, based in Aberdeen, Washington, had total assets of $1.26 billion as of June 30, 2026, and operated 15 branches across several counties in western Washington and three branches in Oregon.