LAKEWOOD, Wash.– Harborstone Credit Union has entered into a definitive agreement to acquire Seattle-based First Sound Bank. According to the $1.9-billion Harborstone, the transaction is structured as a purchase agreement with the credit union purchasing substantially all assets and assuming substantially all liabilities of First Sound Bank.
The transaction has been unanimously approved by the boards of directors of both institutions. Terms of the deal were not released.
“Following the completion of the transaction, First Sound Bank will liquidate and dissolve and distribute its remaining assets to its stockholders,” the institutions said in a statement. “When finalized, the combined institution will have approximately $2.1 billion in assets, $1.5 billion in loans, $1.8 billion in shares and deposits and will have 16 branches throughout King, Pierce, and Thurston Counties.”
What Shareholders Will be Paid
In connection with the transaction, the shareholders of First Sound Bank will receive approximately $6.90-$7.10 in cash for each share of First Sound Bank common stock, subject to adjustment based on the equity value at closing, according to the organizations.
Harborstone is headquartered approximately 40 miles south of Seattle, and said the acquisition will allow it to expand into that market.
The acquisition marks the first purchase of a bank by Harborstone Credit Union.
‘A Win For Everyone’
"We're excited to grow Harborstone Credit Union and owe this opportunity to the decades of smart and strategic decisions that have created a solid foundation for our expansion,” said Geoff Bullock, president and CEO of Harborstone Credit Union. “This acquisition is a win for everyone involved as it provides extended services and products to First Sound's clients, and adds new expertise and services to Harborstone Credit Union's members.”
Harborstone CU, which has approximately 87,000 members, reported $4.205 million in net income for the first half of the year, with capital of 11.73%.
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