Pacific Financial Corporation

What Pacific Financial Corporation does

Pacific Financial Corporation is the bank holding company for Bank of the Pacific, a community bank headquartered in Aberdeen, Washington. Founded over 50 years ago and operating 18 branches across Western Washington and Western Oregon, the bank serves consumer, small business, and commercial clients through deposit products (checking, savings, money market, CDs, IRAs, HSAs), lending products (consumer auto, RV, marine, home equity, HELOC, small business, commercial real estate), and treasury/merchant services for commercial clients. The company is publicly traded on OTCQX under ticker PFLC and reports $1.3 billion in total assets as of Q1 2026 with a 4.04% net interest margin.

The bank operates a multi-channel distribution model combining 18 physical branches (including ATMs and Interactive Teller Machines), online and mobile banking platforms on iOS and Android, SMS text banking, phone-based customer care, and Visa Checkout payment integration. Technology infrastructure consists of standard commercial banking platforms, including Q2-based mobile and online banking. The bank generates revenue primarily through net interest income (lending activity minus interest paid on deposits) complemented by non-interest income from banking fees, loan origination, and commercial treasury services. Pricing reflects a relationship-based community banking model with tiered deposit rates and term/usage-based loan pricing.

In April 2026, Pacific Financial entered a definitive agreement to be acquired by Banner Corporation in an all-stock transaction valued at approximately $177 million, with Pacific Financial shareholders expected to own roughly 7% of the combined entity, which is projected to have approximately $18 billion in assets. The merger is expected to close in Q3 2026 subject to regulatory and shareholder approvals, with a shareholder vote scheduled for August 12, 2026. Randy W. Rognlin serves as Chairman.

Name

Pacific Financial Corporation

Legal name

Pacific Financial Corporation

Website

https://bankofthepacific.com

Company type

Public

Founded year

1970

Operating status

Operating

Headcount range

101–250 employees

Short description

Pacific Financial Corporation is the bank holding company for Bank of the Pacific, a community bank operating 18 branches in Western Washington and Oregon. It serves consumer, small business, and commercial clients with $1.3B in assets, and is being acquired by Banner Corporation in a $177M all-stock deal expected to close in Q3 2026.

Ownership category

akta.pro rank

Product category

Community Banking

NAICS

Offices of Bank Holding Companies (551111), Commercial Banking (522110), Commercial Banking (52211)

SIC

State Commercial Banks (6022), Commercial Banks, Nec (6029)

akta.pro primary industry

General SME & Middle-Market Commercial Banking (FSABABAA)

Keywords

• Community banking
• Retail banking services
• Commercial lending
• Consumer deposits
• Small business banking

Headquarters

HQ city

Aberdeen

HQ country

United States

HQ region

North America

Offices22 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Infrastructure, Marketing or Sales

Revenue model

1. Net Interest Income: Interest income generated from lending activities minus interest paid on deposits. For Q1 2026, net interest margin was 4.04%, with revenue of $13.29 million for the quarter. Net interest income is the primary revenue driver for this community bank.
2. Banking Fees and Service Charges: Non-interest income from account maintenance fees, overdraft fees, wire transfer fees, and other banking service charges
3. Loan Origination Income: Interest income from consumer loans (auto, home equity, HELOC, recreational vehicles), commercial loans, and real estate mortgages. New auto loans include 0.25% discount for auto-pay from Bank of the Pacific account.
4. Commercial Banking Services: Treasury management services, merchant services, commercial real estate lending, and business credit products for commercial clients

Pricing tiers

Go-to-market motion1 record

Distribution channels6 records

Marketing channels8 records

Core offering

Pacific Financial Corporation is the bank holding company for Bank of the Pacific, operating as a community bank across 18 branches in Washington and Oregon. The company provides retail and commercial banking products including checking, savings, money market and CD accounts, credit cards, home equity loans, HELOCs, auto and recreational vehicle loans, small business lending, commercial real estate financing, treasury management, and merchant services, distributed through branch, online, mobile, and ATM channels.

Product overview

Pacific Financial Corporation operates as the bank holding company for Bank of the Pacific, offering a comprehensive suite of retail and commercial banking products through a branch network across Washington and Oregon. The product portfolio consists of core consumer banking products (checking, savings, money market, CDs, IRAs, HSAs), credit products (credit cards, home equity loans, HELOCs, auto/RV loans, small business loans), commercial banking services (commercial real estate, treasury management, merchant services), and digital banking channels (mobile banking, online banking, text banking). The Bank operates 18 branches and serves Western Washington and Western Oregon markets, with a pending merger with Banner Corporation valued at approximately $177 million expected to close in Q3 2026.

Differentiator

Problem solved

Functional benefit

Products and services

• Pacific Access Checking
• Pacific Checking
• Pacific Premier Checking
• Pacific Rewards Checking
• Essential Savings Account
• Youth Savings Account
• Money Market Accounts (MMAs)
• Certificates of Deposit (CDs)
• Individual Retirement Accounts (IRAs)
• Health Savings Accounts (HSAs)
• VISA Gold Credit Card
• Home Equity Loan
• Home Equity Line of Credit (HELOC)
• Auto & Recreational Vehicle Loans
• Small Business Loans
• Merchant Services
• Commercial Real Estate Lending
• Treasury Management
• Mobile Banking
• Personal Online Banking
• Business Online Banking
• Essential Business Checking Account
• Small Business Checking Account
• Business Checking Account
• Business Interest Checking Account
• Community Checking Account
• Business Savings Account
• Pacific Business Rewards Visa
• Commercial Loans & Lines of Credit
• Commercial Checking Account

Quantifiable outcome

• 28% year-over-year increase in Q1 2026 net income compared to Q1 2025
• +2 more outcomes

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration3 records

Feature4 records

Partnerships

One partnership is on record.

• Banner CorporationcoreStrategic or Co-development Partner · 30 April 2026Pacific Financial Corporation has agreed to be acquired by Banner Corporation, the holding company for Banner Bank, in an all-stock transaction valued at approximately $177 million. The merger is expected to close in Q3 2026, subject to regulatory approvals and Pacific Financial shareholder approval. Upon closing, Pacific Financial shareholders will own approximately 7% of the combined entity with approximately $18 billion in assets.

Scale indicators12 records

Recent moves5 records

Expansion highlights4 records

Broad incumbents

• Wintrust Financial Corporation: Wintrust Financial (WTFC) is a large community bank holding company operating specialty and community banks across the Midwest; comparable bank-holding-company structure with diversified NII, fee, and commercial treasury revenue streams. Broader scale and geography but similar community/commercial banking mix.
• Umpqua Holdings Corporation / Columbia Banking System: Umpqua Holdings (now part of Columbia Banking System, OZK) is a much larger Pacific Northwest bank holding company; broader incumbent operating throughout OR, WA and CA with overlapping deposit, commercial real estate, and small business banking services. Comparable product breadth and regulatory classification, though materially larger scale.

Regional players

• Bank of Hawaii Corporation: Bank of Hawaii (BOH) is a community-focused bank holding company providing consumer and commercial banking; similar community-banking DNA, scale ($1-2B asset range comparable to Pacific Financial), and NIM-driven revenue model, but operates exclusively in Hawaii rather than the Pacific Northwest.

Direct peers

• Heritage Financial Corporation: Heritage Financial Corporation (HFWA) is a Washington state community bank holding company operating Heritage Bank with branches across WA and OR; directly comparable in regional footprint, community banking model, and asset size to Pacific Financial Corporation.
• Glacier Bancorp, Inc. Glacier Bancorp (GBCI) is a community bank holding company operating regional banks across the Western US; highly comparable community-banking multi-bank holding company model, deposit-funded lending, and NIM-driven revenue, though at a larger scale than Pacific Financial.
• Banner Corporation: Banner Corporation (BANR) is the parent of Banner Bank, a Pacific Northwest community bank holding company; it directly overlaps with Pacific Financial in Western WA and Western OR markets and is the agreed acquirer of Pacific Financial in the announced ~$177M all-stock transaction. Same community-banking business model, deposit franchise, and commercial/retail product mix.
• HomeStreet, Inc. HomeStreet (HMST) is a Seattle-based bank holding company with retail, mortgage, and commercial banking operations concentrated in the Pacific Northwest; overlaps with Pacific Financial's WA/OR deposit franchise and consumer/commercial lending mix.
• Sound Financial Bancorp: Sound Financial Bancorp (SFBC) is the holding company for Sound Community Bank, a Seattle-based community bank with comparable deposit-gathering and small-business lending focus, and operates within the same Western Washington geographic footprint as Bank of the Pacific.

Market position

Strengths4 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights6 records

Customer concentration

• Facebookfacebook.com/BankofthePacific
• LinkedInlinkedin.com/company/bank-of-the-pacific
• Instagraminstagram.com/bankofthepacific

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Subsidiaries1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Pacific Financial Corporation