Washington Credit Union Buys Bank

Sound Credit Union’s acquisition of the $205 million Bank of Washington in Lynwood is expected to close at the end of the year, according to a joint statement released last week.

The $1.5 billion Tacoma-based credit union will reportedly pay about $30 million to purchase the bank, according to The Seattle Times.  Traded on the OTC Markets, the Bank of Washington’s shares increased four percent, ending Friday at $6.08 per share. The bank’s shareholders will receive $6.40 in cash per share, based on the outstanding shares as of the date of the purchase agreement.

Founded in 1996, BOW operates five branches, serves 2,300 clients, manages $169 million in deposits and holds more than $19 million in capital, according to the FDIC. The commercial bank posted a net income of $477,000 and an ROA of 0.48% at the end of June. BOW recorded $160 million in real estate loans, $7.1 million in commercial loans and $1.3 million in individual loans, according to the FDIC.

“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,” Sound Credit Union President/CEO Don Clark, said.

BOW operates branches in Edmonds, Everett, Lynwood, Redmond and Mukilteo and employs 50 staff members. Nearly all of them will be offered jobs with Sound CU, a bank spokesperson said.

Martin Steele, president/CEO of BOW, will join Sound CU as its market executive who will serve the North Sound region.

“This deal rewards our long-term shareholders who have supported us for many years,” Marty Steele, president/CEO of Washington Bancorp, the holding company of BOW, said. “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.”

This is the eighth credit union bank purchase deal publicly announced this year.