Lacey-based Anchor Bank has agreed to a merger with Washington Federal, Inc., headquartered in Seattle.
The former operates 10 full-service branches and a loan production office, and as of Dec. 31, 2016, had total assets of $441 million and total deposits of $328 million. and total stockholders’ equity of $64 million.
The merger is an all-stock transaction, with the aggregate merger consideration consisting of shares of Washington Federal common stock having a value of approximately $63.9 million — a purchase price approximately equal to Anchor’s tangible book value as of the close of last year.
“This transaction will enhance Washington Federal’s presence in southwestern Washington by partnering with a bank that has a similar heritage and values,” said Brent J. Beardall, president and CEO of Washington Federal. “The merger will allow us to establish a commercial banking presence in downtown Tacoma”
After closing, the combined company will have 248 offices in eight western states with total assets of approximately $15.3 billion and total deposits of approximately $11.0 billion. The merger, pending regulatory approval, is expected to close in the third calendar quarter of 2017.
“We are proud to join forces with another Washington company that, like Anchor, is known for doing business with integrity and treating people fairly,” added Jerald Shaw, Anchor president and CEO. “Washington Federal also has a long history of solid financial performance. By joining forces, we believe that we will create a stronger financial partner for the communities served by Anchor and that shareholders will experience better returns and improved liquidity over the long run.”