LAKEWOOD, Wash.–Harborstone Credit Union has announced plans to acquire another bank.
The $1.9-billion Harborstone said it has entered into an agreement to buy Mt. Vernon, Wash.-based SaviBank in an all-cash transaction. The deal would mark its second such acquisition, including one that is currently underway.
Terms of the deal were not released, but in a statement the organizations said they currently estimate the price per share on a pre-tax basis will fall within a range of $16 to $17 per share of Savi Financial Corp. common stock.
The transaction is structured as a purchase agreement with Harborstone Credit Union purchasing substantially all assets and assuming substantially all liabilities of SaviBank
The $592.6-million SaviBank reported $19.6 million in net income for 2023. Harborstone CU reported $10 million in net income during 2023, with capital of 11.88%.
The credit union said the acquisition will help it to grow its presence in the Skagit County-area marketplace, diversify its assets, and “add superior talent and expertise.”
The bank, which has 10 branch locations, is headquartered approximately 100 miles north of the credit union.
‘Meaningful Relationships’
“We look forward to working with Harborstone Credit Union to continue our tradition of fostering meaningful customer relationships while having a positive impact in our local communities,” Michal D. Cann, chairman and President of Savi Financial, said in a statement. “We are deeply focused on providing resources and services for our customers to succeed, and believe that the additional services, products and locations Harborstone Credit Union provides will help us continue to meet the financial needs of our customers. Through the unique structure of this acquisition by Harborstone Credit Union, we believe we are maximizing value to our shareholders who have supported us over the years.”
‘More Access’
Added Geoff Bullock, president & CEO of Harborstone Credit Union, “As a member-owned financial institution, the request from our members for more access and ever-improving technology has been at the forefront of our minds. This acquisition achieves that and more. The wisdom of Harborstone Credit Union’s leadership over the past decade has enabled us to both purchase SaviBank with cash that we have saved just for this purpose and to remain very well capitalized. Mike Cann and the Savi team have been building something special up north, and we believe the best is yet to come for both organizations as we come together.”
The transaction is anticipated to be completed in the fourth quarter of 2024 subject to receiving all regulatory approvals, approval by the stockholders of Savi Financial, and other customary closing conditions.
Another Acquisition Underway
As CUToday.info reported earlier, in August of 2023 Harborstone announced the purchase of Seattle-based First Sound Bank. That transaction is expected to close in the second quarter of this year.
In connection with that transaction, the shareholders of First Sound Bank received 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.
When finalized, the combined institution will have, including with the acquisition of First Sound Bank, approximately $2.7 billion in assets, $2.0 billion in loans, $2.3 billion in shares and deposits 27 branches throughout Skagit, Whatcom, Island, San Juan, King, Pierce, and Thurston counties.
Advisors on Deal
Harborstone Credit Union was advised in the transaction by McQueen Financial Advisors, as exclusive financial advisor, and Luse Gorman, PC, as legal counsel. SaviBank was advised by Panoramic Capital Advisors, Inc., as exclusive financial advisor, Buchalter, A Professional Corporation, as legal counsel, and Hillworth Securities LLC provided a fairness opinion.
Other Deals to Date in 2024
As CUToday.info reported earlier, other bank acquisitions announced by credit unions to date in 2024 include:
- The $2-billion Empeople Credit Union in Moline, Ill. acquired the $182-million TSB Bank in Lomira, Wis. The purchase price was not disclosed to members (February).
- Beacon Credit Union, Wabash, Ind., acquired Mid-Southern Savings Bank of Salem, Ind. for approximately $45 million (January).
- In Tacoma, Wash. the $2.9-billion Sound Credit Union here has agreed to buy $104-million Washington Business Bank, based in Olympia, Wash. Shareholders of Washington Business Bank received approximately $34-$36 in cash for each share of Washington Business Bank common stock.
- Sound Credit Union made $21.23 million in net income in 2023 and $22.6 million in 2022. Capital stands at 11.33%, according to Call Report data. Washington Business Bank made $1.571 million in net income 2023 and $1.172 million in 2022, according to FDIC data. The purchase price was approximately $26 million.
- The $2.9-billion Advia Credit Union, Kalamazoo, Mich., reached into Illinois with the purchase the $255-million NorthSide Community Bank (January).
- The $7-billion Hudson Valley Credit Union is purchasing the $593-million Catskill Hudson Bank in Kingston, N.Y. for $28.6 million (January).
- The $11.8-billion Global FCU in Anchorage, Alaska is buying the $1.5-billion First Financial Northwest Bank in Renton, Wash. for $231.2 million January).
- The $7-billion Hudson Valley Credit Union here is purchasing eight locations from Boston-based Berkshire Bank.
- In addition, the $2.98-billion All-In Credit Union in Daleville, Ala. is buying five branches and the book of business from Louisville, Ala.-based 22nd State Bank. As of October 31, 2023, the deposit and loan balances associated with the transaction were approximately $145 million and $130 million, respectively (January).
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