Anchor Bancorp has found another buyer after terminating its previous deal with Seattle’s Washington Federal. The Lacey, Wash.-based Anchor will now be bought for $77 million by FS Bancorp, Inc., Mountlake Terrace, Wash.
The $480 million Anchor had signed a deal with Washington Federal in April 2017. It terminated that arrangement and announced its new acquirer on July 17. It primarily serves western Washington through nine branches in Grays Harbor, Thurston, Lewis, and Pierce counties, and one loan production office in King County.
Based on March 31 numbers, the combined company would have $1.5 billion in assets, $1.2 billion in deposits, 22 branch offices throughout western Washington, and eight loan production offices in Washington state.
“We believe Anchor will be an excellent strategic and cultural fit with our existing franchise,” said Joseph C. Adams, CEO of the $1 billion FS Bancorp. “Anchor’s experienced and professional bankers provide us with a tremendous financial opportunity in terms of depth of talent with a strong and diverse customer base.”
The deal, which has been approved by both boards, is expected to close late this year or early next year.
“We are disappointed we will not be able to consummate the transaction with Washington Federal, but wish to thank the board of directors and management of Washington Federal for their professionalism as we have worked through this process,” said Anchor President and CEO Jerald L. Shaw. “We part with a great deal of respect and wish Washington Federal continued success.”
Raymond James & Associates, Inc. served as financial advisor to FS Bancorp in the transaction and delivered a fairness opinion to the board of directors of FS Bancorp. Keller Rohrback LLP served as legal counsel to FS Bancorp.
Keefe, Bruyette, & Woods, A Stifel Company, acted as financial advisor to Anchor and delivered a fairness opinion to its Board of Directors, and Breyer & Associates PC and Silver, Freedman, Taff and Tiernan, LLP served as legal counsel to Anchor.