Tacoma-based Sound Credit Union and Lynnwood-based Washington Bancorp, the holding company for the Bank of Washington, have entered into an agreement under which Sound Credit Union will purchase most of the Bank of Washington’s assets, the financial institutions jointly announced today.

The transaction is still awaiting regulatory approval and is likely to be completed by early next year. Washington Bancorp shareholders are expected to receive approximately $6.40 per share, according to a news release.

After the acquisition is completed, Sound Credit Union’s assets will total approximately $1.7 billion, with $1.3 billion in loans, and $1.5 billion in deposits.

“We are excited to announce the acquisition of Bank of Washington’s assets.  This combination will help us further expand our footprint in Snohomish and King Counties, accelerate our business and mortgage lending efforts, and add great employees,” said Don Clark, Sound Credit Union’s president and CEO.

“This deal rewards our long-term shareholders who have supported us for many years,” added Marty Steele, Washington Bancorp’s president and CEO. “As a larger and stronger financial institution with a significantly higher legal lending limit, we will be better able to compete in today’s competitive environment and serve our customers.”