Banner Corp. (BANR) in Walla Walla, Wash., is set to buy a small troubled Idaho bank through a bankruptcy auction.

The $4.5 billion-asset company said late Thursday that it will pay $2.6 million to buy the $100 million-asset Idaho Banking in a sale under Section 363 of the U.S. Bankruptcy Code. The selling bank's holding company, Idaho Bancorp (IDBC), will file for Chapter 11 bankruptcy, the companies said in a press release.

Subscribe Now

Complete access to real-time information and analysis of news and trends in the industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.