Bank Shareholders Approve Proposed Acquisition by Global Credit Union

Shareholders of the $1.4 billion First Financial Northwest Bank (FFNB) in Renton, Wash., voted in favor of its acquisition deal by the $11.8 billion Global Credit Union in Anchorage, Alaska.

According to FFNB’s Form 8-K filed with the U.S. Securities and Exchange Commission on Thursday, there were a total of 9,174,425 shares of the bank’s common stock outstanding that had been entitled to vote at the special meeting last week, and 6,904,007 shares of common stock were represented in person or by proxy, which met the quorum requirement.

More than 6.7 million shares, or 73.5% of shares outstanding voted for the proposed acquisition and 110,934 shares, or 1.2% of shares outstanding, voted against it, and 49,370 shares abstained, FFNB’s Form 8-K filing showed.

Although FFNB said Washington state regulators have approved the proposed purchase deal announced in January, decisions from the NCUA and FDIC were pending as of Thursday.

Global has agreed to purchase FFNB for approximately $231 million in cash.

“The company cautioned that there is no assurance of obtaining these final approvals or whether there will be unacceptably burdensome conditions attached,” FFNB said in a prepared statement.

According to the bank’s second quarter financial report released Thursday, its net income totaled $1.6 million, compared to a net loss of $1.1 million at the end of the first quarter and net income of $1.5 million, at the end of the second quarter of 2023. For the first half of this year, FFNB posted net income of $480,000 compared to net income of $3.6 million for the first half of 2023.

“During the second quarter, our financial results were positively impacted by the successful completion of a project to modify a large number of loans relating to our previously announced sale of the Bank to Global Federal Credit Union,” FFNB President/CEO Joseph W. Kiley III said in a prepared statement. “Our balance sheet contained over $250 million of loans that are ineligible for a federally chartered credit union like Global to hold due to various aspects, primarily an original term greater than 15 years for non-owner occupied residential and commercial loans. As part of our purchase and assumption agreement with Global, the bank agreed to use its good faith efforts to modify or refinance these loans. I am very pleased that the outstanding efforts of our employees resulted in the modification or refinance of over $130 million of this portfolio.”

If the acquisition is approved by the NCUA and FDIC, it is expected to significantly increase Global’s commercial loan portfolio and expand its market presence in Washington where it first began operations 40 years ago.

Global President/CEO Geoff Lundfelt said the ability to offer expanded business and commercial financial products and services to Global’s existing membership would be a significant strategic step for the credit union, while customers of FFNB will have access to the credit union’s consumer products.

The credit union runs 27 branches in Washington, serving more than 180,000 members across the state. FFNB’s 15 branches are operated by more than 150 employees who serve approximately 13,000 customers.