Vancouver’s Riverview Community Bank announced Thursday it will expand its Portland presence by acquiring MBank, a three-branch bank headquartered in Gresham, Ore.
In the deal, Riverview will assume some of MBank’s assets and liabilities, including $130 million in net loans and $128 million of MBank’s customer deposits. The deal was announced in a joint press release from the two banks’ respective parent companies, Riverview Bancorp, Inc. and Merchants Bancorp.
By adding MBank’s three branches — located in Gresham, Southeast Portland and in the Lake Grove neighborhood of Lake Oswego — Riverview will double its presence in Oregon to six branches.
The deal is to be in cash, with the final price to be determined shortly before the deal closes, according to a filing Riverview made with the Securities and Exchange Commission.
“This is a natural geographic expansion for Riverview, fitting well into our strategy of increase market share in Oregon,” said Riverview chairman and CEO Pat Sheaffer said. “Our two banks have identical missions — to provide our clients with local, personal service you can only receive from a true community bank. We are excited to welcome MBank’s customers.”
The deal is expected to close by March 31, pending approval from regulators and shareholders. With the acquisition, Riverview’s total assets will exceed $1 billion threshold. Riverview, which was founded in 1923, currently has 14 branches in Washington.
Executives from both companies said Thursday they expected a smooth transition, touting their similar office cultures.
“We’re both community banks. We’re not a large, out-of-town bank picking up a small community bank and it’s going to change their whole culture,” Riverview executive Kevin Lycklama said. “There’s a lot of overlap with employees who worked at Riverview previously now working at MBank (and vice versa).”
MBank executive Casey Ryan worked with Riverview for eight years and said he tried to mimic what he learned there.
“There’s very little difference. I basically copycatted what I learned at Riverview,” said Ryan, who left Riverview in 2013. “Although MBank has a good culture, it didn’t have what I wanted so I took what I wanted from the Riverview culture and brought that over.”
Some finer points of the deal are still being worked out. Riverview employs around 230, compared with MBank’s 25. Executives said they expected there will be some reorganization.
“We take the welfare of all of our employees in both of our entities very seriously,” said Riverview executive Kim Capeloto. “Our goal would be to make sure that any employee in either company is treated with dignity and respect, and that the outcomes are positive for all those involved.”
MBank’s branches will continue with business as usual until the deal closes, at which point they will become Riverview Community Banks and no more banking services will be provided by MBank.
Riverview’s shares closed at $5.29, up 7 cents, in Nasdaq trading Thursday.
