TACOMA, Wash.—Keeping up the strong pace of bank buys in 2024, the $2.9-billion Sound Credit Union here has agreed to buy $104-million Washington Business Bank, based in Olympia, Wash.
According to sound Credit Union, it is purchasing substantially all assets and assuming substantially all liabilities of the bank. The transaction is expected to be completed in the fourth quarter of 2024, subject to receiving all regulatory approvals, Washington Business Bank shareholder approval, and other customary closing conditions, Sound CU said.
Shareholders of Washington Business Bank will receive approximately $34-$36 in cash for each share of Washington Business Bank common stock, subject to certain adjustments at closing, the CU stated.
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.
Active Year Continues
“Washington Business Bank has served as a cornerstone for local business owners for more than twenty years,” said Don Clark, president and CEO of Sound Credit Union, in a statement. “We look forward to providing these new members the same level of excellent service, an expanded suite of products and services, as well as all the benefits membership in a credit union brings to help their businesses and families thrive.”
“Since our founding, our mission has been to work alongside small business owners across Washington to help them become more successful,” said Jon M. Jones, president and CEO of Washington Business Bank, in a release. “We know these owners will find the same level of partnership with the Sound Credit Union team for years to come.”
Michael Bell, the pioneer of credit union purchases of banks, underscored how 2024 will be an active year for these purchases—unless they hit a speed bump.
“Activity remains at its highest level and it remains in every geography,” said Bell, a partner and chair of the Financial Institutions Practice Group at Honigman, LLP, which is representing Sound CU. “The only thing that would improperly slow this free market would be political intervention sparked by misinformed Bankers.”
Bell has been part of more than 50 whole-bank agreements, plus additional bank branch purchases. Sound Credit Union’s financial advisor in the transaction is ALM First. Washington Business Bank is being advised by D.A. Davidson & Co. as financial advisor and Lane Powell PC as legal counsel.
Other Deals to Date in 2024
As CUToday.info reported earlier, other bank acquisitions announced by credit unions to date in 2024 include:
- Beacon Credit Union, Wabash, Ind., acquired Mid-Southern Savings Bank of Salem, Ind. for approximately $45 million.
- The $2.9-billion Advia Credit Union, Kalamazoo, Mich., reached into Illinois with the purchase the $255-million NorthSide Community Bank.
- The $7-billion Hudson Valley Credit Union is purchasing the $593-million Catskill Hudson Bank in Kingston, N.Y. for $28.6 million.
- 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.
- In addition, the $2.98-billion All-In Credit Union in Daleville, Ala. is bought 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.
- The $7-billion Hudson Valley Credit Union here is purchasing eight locations from Boston-based Berkshire Bank.