Tacoma-based Columbia Banking System, Inc. announced Friday its wholly owned subsidiary, Columbia Bank, has acquired all of the deposits and certain assets of Colfax-based Bank of Whitman from the Federal Deposit Insurance Corporation (FDIC), which was appointed receiver of the institution. The FDIC entered into a modified whole bank purchase and assumption agreement without loss share with Columbia Bank under which eight branches, located in Clarkston, Colfax, Othello, Pullman, Ritzville, Spokane (downtown and Wandermere) and Walla Walla will reopen this morning as Columbia Bank branches. As part of the transaction, the remaining 12 branches will not reopen. Accounts at the Kennewick and Pasco branches will be transferred to nearby Columbia Bank branches in the Tri Cities.

With all deposits transferred to Columbia Bank, customers may continue to access their funds without interruption through their current checks, cards and online services. Additionally, all former customers of Bank of Whitman may bank at any of the eight remaining branches and the two Columbia Bank branches in the Tri Cities.

“We are pleased to work closely with the FDIC to assume all the deposits of the Bank of Whitman and to preserve eight of the branches,” said Melanie J. Dressel, President and Chief Executive Officer, Columbia Banking System. “We warmly welcome former Bank of Whitman customers into our extended Columbia Bank network, and want to assure them that their deposits are safe, available and remain FDIC insured to the maximum permitted by law. The eight branches will open under new ownership with their regular business hours, and our two Tri Cities locations will also be available. After former Bank of Whitman services are integrated to our systems, customers will have full access to all Columbia Bank services, including the 101-branch Columbia Bank network throughout Washington and Oregon. We look forward to working with the Bank of Whitman team during this transition and are committed to serving our new Eastern Washington communities.”

Columbia Banking System will acquire approximately $315 million in total assets and $516 million in deposits. The purchase price reflects an asset discount of $30 million with no deposit premium. About $258 million in assets as of the bid valuation date were retained by the FDIC for later disposition. The excluded loans primarily represented loans delinquent sixty days or more, certain types of land and construction loans, some large commercial real estate loans and other real estate owned. Balances are subject to change based on activities between the bid valuation date and the purchase date. The assets acquired and liabilities assumed are subject to internal adjustment under generally accepted accounting principles.

Keefe, Bruyette & Woods served as financial advisor for Columbia in this transaction.

For more information, visit http://www.columbiabank.com .