|FOR IMMEDIATE RELEASE
||January 29, 2013|
Pacific Financial Corporation to Acquire
3 Coastal Branches from Sterling Savings Bank
Aberdeen, Washington - Pacific Financial Corporation (OTCBB:
PFLC) (the “Company”) today announced that its wholly-owned subsidiary, Bank of the Pacific, has entered into a definitive
agreement to acquire the Aberdeen, Washington; Astoria, Oregon; and Seaside, Oregon branches of Sterling Savings Bank, a wholly-owned
subsidiary of Sterling Financial Corporation. The transaction will expand Bank of the Pacific’s operations to 17 branches
in Washington and 3 branches in Oregon.
Under the terms of the agreement, Bank of the Pacific will acquire
approximately $50 million of deposits, paying a deposit premium of 2.77% on core in-market deposits assumed. Additionally, approximately
$6 million of performing loans will be acquired.
“We are very excited about expanding our footprint with
these branch locations, particularly in Oregon. This compliments nicely our current branch construction in Warrenton, Oregon and
will provide our new and existing customers with added convenience and service in Clatsop County, as well as boosting our presence
in Aberdeen, Washington.” said Dennis Long, President and CEO.
The transaction, which is subject to regulatory approval and
other customary conditions of closing, is expected to be completed during the second quarter of 2013. Upon completion of the acquisition,
the three Sterling Bank branches will operate under the Bank of the Pacific name, and will become part of the Bank of the Pacific’s
branch network of locations in the Washington and Oregon coastal regions.
Graham & Dunn, PC served as the legal advisor to Bank of
Pacific Financial Corporation
of Aberdeen, Washington, is the bank holding company for Bank of the Pacific, a state chartered and federally insured commercial
bank. Bank of the Pacific offers banking products and services to small-to-medium sized businesses and professionals in Washington
and Oregon. As of December 31, 2012, the Company had assets of $644 million and operated 16 branches in the communities of Grays
Harbor, Pacific, Whatcom, Skagit and Wahkiakum counties in the State of Washington, and one branch in Clatsop County, Oregon.
Visit the Company’s website at www.bankofthepacific.com.
|Pacific Financial Corporation
||Pacific Financial Corporation|
Certain statements in this press
release, including, without limitation, statements as to the impact of the purchase and assumption transaction, statements as
to the Company’s or Bank’s management beliefs, expectations or opinions, and all other statements in this press release,
other than historical facts, are “forward-looking statements” and are intended to be covered by the safe harbor provided
by the Private Securities Litigation Reform Act of 1995. When used in this release, the words “expects,” “anticipates,”
“intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions
are generally intended to identify forward-looking statements. Actual results may differ materially from the results discussed
in these forward-looking statements because such statements are inherently subject to significant assumptions, risks and uncertainties,
many of which are difficult to predict and are generally beyond the Company's control. These risks and uncertainties include,
but are not limited to, the ability of the Bank and Sterling to complete the proposed acquisition transaction on the terms summarized
above or other acceptable terms, or at all, due to a number of factors, including the receipt of required regulatory approvals
or the satisfaction of other customary closing conditions. Other factors that could cause actual conditions, events or results
to differ significantly from those described in the forward-looking statements may be found under the headings “Risk Factors”
and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company's
Annual Report on Form 10-K, as updated periodically in the Company's periodic filings with the Securities and Exchange Commission,
which are available online at www.sec.gov. The Company disclaims any intent or obligation to publicly update or revise any forward-looking
statements, regardless of whether new information becomes available, future developments occur or otherwise.