Banner Corporation announced that they have entered into a definitive merger agreement pursuant to which Banner will acquire Skagit Bancorp Inc. in an all-stock transaction, subject to the terms and conditions set forth therein. Under the merger agreement, Skagit will merge with and into Banner, and immediately thereafter Skagit Bank will merge with and into Banner Bank.  The combined company will have approximately $11.4 billion in assets. Upon completion of the merger, Cheryl R. Bishop, Skagit's Chief Executive Officer, will join the Banner board of directors.