Sound Credit Union Inks Deal to Buy Washington Business Bank for $26 Million
If approved by regulators and shareholders, the proposed purchase is expected to close during the fourth quarter.
The $2.9 billion Sound Credit Union in Tacoma, Wash., said Monday it inked a definitive agreement to buy the $104 million Washington Business Bank in Olympia for $26 million in cash.
WBB is publicly traded on the Over-the-Counter Pink market. Shareholders will receive an estimated $34 to $36 in cash for each outstanding share of the bank’s common stock. At the end of last year, the bank held 744,887 common shares outstanding, according to the bank’s Report of Independent Auditors and Financial Statement.
The proposed acquisition, which is expected to close in the fourth quarter if approved by regulators and shareholders, will expand Sound’s presence in the Olympia market, diversify its assets, and add talent and expertise to its staff.
Established in 2002, WBB’s 13 employees run two branches that serve just under 800 customers, most of whom are small business owners.
The bank managed $91.5 million in loans, $79.9 million in deposits, and $15.6 million in capital, according to its FDIC financial filings. At the end of last year’s fourth quarter, WBB posted net income of $1.5 million.
“Washington Business Bank has served as a cornerstone for local business owners for more than 20 years,” Sound President/CEO Don Clark said in a prepared 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.”
Sound said it plans to continue to operate WBB’s current location in downtown Olympia at 5th Avenue and Franklin Street, which will provide members with two full-service Olympia locations including its branch at Martin Way and Lilly Road.
“Since our founding, our mission has been to work alongside small business owners across Washington to help them become more successful,” WBB President/CEO Jon M. Jones said. “We know these owners will find the same level of partnership with the Sound Credit Union team for years to come.”
This is the credit union’s second bank buy deal. In 2018, for approximately $30 million, Sound bought the $205 million Bank of Washington in Lynwood.