U.S. Bancorp Plans to Buy Valley National for Stock

PORTLAND, Ore. -- U.S. Bancorp said it plans to acquire Valley National Corp., a Forest Grove, Ore., bank holding concern, in a stock-swap with an indicated value of about $13.7 million. U.S. Bancorp, with assets of $9 billion, characterized Valley National as a "quality bank" in one of Oregon's highest growth areas.

Under the plan, which requires regulatory and Valley National shareholder approval, Valley National holders would receive one share of U.S. Bancorp common in exchange for every two Valley National common shares they hold. The transaction will be financed by the issuance of 574,490 authorized but unissued U.S. Bancorp shares, the company said.

U.S. Bancorp operates 195 branches in Oregon through its U.S. Bank unit. Valley National, with assets of $93 million, has five branch bank locations and is the parent of Oregon-based Pacific Northwest Trust Corp. and Northvale Homes Inc.