Tacoma, Wash.-based Sound Credit Union has agreed to buy Bank of Washington, Lynwood.
In 2017, the $195 million Bank of Washington reported net income of $477,000, and it showed a profit of $348,000 through June of 2018.
The deal is expected to close in the first quarter of 2019. After it closes, Sound CU will have approximately $1.7 billion in assets, $1.3 billion in loans, $1.5 billion in deposits and operate 29 branches throughout King, Pierce, Snohomish and Thurston Counties.
“We are excited to announce the acquisition of Bank of Washington’s assets,” said Don Clark, Sound Credit Union’s president and CEO. “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. We feel the value and cultures of both companies are very similar with a strong commitment to customers and the communities in which we serve.”
The transaction has been unanimously approved by the boards of directors of both institutions and is subject to regulatory approval and approval by the shareholders of Washington Bancorp, Inc.
“This is the first CU purchase of a bank in Washington State. This is truly a nationally relevant option for CUs and Banks. You will see more transactions in the western region soon,” said Michael Bell, attorney and counselor at Royal-Oak, Mich.-based Howard & Howard, who represents Sound CU and who has been part of 23 CU/bank deals, including three mergers of a bank into a credit union.