Clatsop Community Bank is being absorbed into Oregon City-based Lewis & Clark Bank in a merger expected to close by the middle of this year.

The merger, valued at $15 million for Clatsop shareholders, was unanimously approved by the governing boards of both banks. It is subject to approval by regulators and shareholders in each bank.

“Lewis & Clark is the perfect partner for Clatsop Community Bank,” Joe Schulte, the CEO of Clatsop Community Bank, said in a news release. “We are excited to combine with Lewis & Clark and continue to offer our customers exceptional service and tailored products. This is a great opportunity for Clatsop Community Bank to immediately benefit from increased scale and participate in much larger, adjacent markets.”

Three board members from Clatsop Community Bank will join a nine-member board for Lewis & Clark. Jeff Sumpter, president and CEO of Lewis & Clark, will continue in his role, while Schulte will be market president.

“Clatsop Community Bank is a great bank and an ideal partner for us.” Sumpter said in the release. “We have similar cultures and banking philosophies, and this combination will create significant synergies and opportunities for future growth. The greater scale and added liquidity will strengthen our financial position, expand our ability to serve our clients and better position us for future growth.”

When the deal closes, Clatsop shareholders will receive approximately 0.3 Lewis & Clark shares and $2.89 in cash for each share of Clatsop stock. Based on Lewis & Clark’s most recent closing stock price of $34.25, the merger consideration is valued at $13.30 per Clatsop share, although the value will fluctuate.

Clatsop Community Bank, formed in 2008, has branches in Astoria and Seaside. As of last year, the bank had $95 million in assets.

Lewis & Clark Bank, chartered commercially in 2006, serves Oregon and southwest Washington state through its main branch in Oregon City.