Another Sacramento bank acquired: Merchant Bank of Commerce joins Washington chain for $266M

A Washington state bank announced Wednesday that it is buying Sacramento-based Bank of Commerce Holdings, marking the third acquisition of Sacramento-based banks this year.

Washington-based Columbia Banking Systems will buy Bank of Commerce Holdings, the parent company of Merchant Bank of Commerce, for $266 million. It will mark Columbia Banking Systems’ entry into the California market, according to the Sacramento Business Journal, which first reported the transaction.

“We are delighted to welcome Merchants Bank of Commerce clients and employees into the Columbia Bank family, extending our footprint beyond the Northwest and into California,” Columbia CEO Clint Stein said in a news release. “We have tremendous respect for the Merchants Bank of Commerce franchise and view this as an opportunity to expand with an organization that aligns with our long-standing commitment to clients and community.”

The acquisition leaves Sacramento with three locally-based banks: El Dorado Savings Bank, Five Star Bancorp and River City Bank. Two formerly Sacramento-based banks — Golden Pacific Bank and American River Bank — left the region in March and April, respectively, after being acquired by larger companies.

Bank of Commerce Holdings was founded in Shasta County in 1982, under the name Redding Bank of Commerce. In the following decades, it expanded throughout the Sacramento region, eventually opening branches in six Northern California counties. It took on the Merchants Bank of Commerce moniker following its 2018 purchase of the oldest bank in Sacramento.

Columbia said that the California branches of Bank of Commerce Holdings will continue to operate under the Merchant Bank of Commerce name.

This story was originally published June 24, 2021 at 8:15 AM.