The name of all 14 branches of F&M Bank here will be changed to Banner Bank within a month, says Lloyd Baker, chief financial officer of Banner Corp., the Walla Walla, Wash.-based bank holding company that acquired F&M in May.


Banner Corp., the parent company of Banner Bank, is scheduled to integrate the data-processing systems of its Banner and F&M branches fully on Aug. 20, Baker says. About that same time, he says, Banner Bank signs should be up on all 14 former F&M branches.


Banner Corp. announced in December that had agreed to acquire Spokane-based F&M Bank, and it has operated F&M as a division since completing the acquisition of F&M in May.


Baker says that all of F&Ms branches will remain open under the Banner name. Also, most of F&Ms 160 employees are staying on through the transition, says Mike Jones, CEO of Banner Corp.


Thats a big plus for us, Jones says. As far as were concerned, they can all stay. They are good people, and we can use more of them.


F&M has continued to grow since the merger was announced, he says, adding that most customers probably havent noticed a difference since the merger.


As of March 31, F&M Bank had $422 million in assets, up from $339 million as of Sept. 30, 2006. F&M had $379 million in loans and $365 million deposits as of March 31, up from $354 million in loans and and $339 million in deposits, respectively, on Sept. 30.


Two of F&Ms major shareholders, David Klaue and John Layman, have joined Banner Corp.s board of directors.


Jones says the addition of Klaue and Layman to the 15-member Banner board will add valuable insight with regard to the Spokane area and ensure a smooth transition as F&M is integrated fully with Banner Bank.


Banner Corp. is a $4.2 billion bank holding company. Its Banner Bank unit currently operates three branches and a real estate loan center in Spokane. Including the F&M branches, Banner Bank now has 77 branches and 13 loan offices in 27 counties in Washington, Idaho, and Oregon. Banner Bank was founded in Walla Walla in 1908.


F&M was founded in Rockford, Wash., in 1906, and was celebrating its centennial year when the merger was announced.


Contact Mike McLean at (509) 344-1266 or via e-mail at mikem@spokanejournal.com.