Washington-chartered Harborstone Credit Union has agreed to acquire Savi Financial, the bank holding company for SaviBank.
Under the terms of the agreement, Harborstone Credit Union will acquire substantially all assets and assume substantially all liabilities of SaviBank.
The transaction has been unanimously approved by the boards of directors of both companies.
It is expected to be completed in the fourth quarter of this year, subject to customary closing conditions including regulatory approvals, and stockholders of Savi Financial.
Upon closing, Savi Financial will liquidate, dissolve, and distribute its remaining assets to its stockholders.
Harborstone Credit Union will add SaviBank customers as members with full access to its expansive product and service offerings.
Savi Financial chairman and president Michal Cann said: “We look forward to working with Harborstone Credit Union to continue our tradition of fostering meaningful customer relationships while having a positive impact in our local communities.
“We are deeply focused on providing resources and services for our customers to succeed, and believe that the additional services, products, and locations Harborstone Credit Union provides will help us continue to meet the financial needs of our customers.
“Through the unique structure of this acquisition by Harborstone Credit Union, we believe we are maximizing value to our shareholders who have supported us over the years.”
Established in 1955 in Lakewood, Washington, Harborstone Credit Union has become one of the largest credit unions in Washington with over 88,000 members and $1.9bn in total assets.
The firm has fifteen branches located throughout King, Pierce, and Thurston counties and offers a full range of products and services to its members.
It is Harborstone Credit Union’s second bank purchase announced, after the company signed an agreement in August last year, to acquire Washington-based First Sound Bank.
The First Sound Bank transaction is expected to be closed in the second quarter of this year.
Upon completion, including the acquisition of First Sound Bank, Harborstone Credit Union will have around $2.7bn in assets, $2bn in loans, and $2.3bn in shares and deposits.
The effective price per share cannot be accurately determined before the closing date and will depend on the financial performance and market conditions, among other things.
However, Harborstone Credit Union currently estimates that Savi Financial common stock will be purchased within a range of $16 to $17 per share, on a pre-tax basis.
With the acquisition, the company is enabled to enhance its presence in the Skagit County-area marketplace, diversify its assets, and add superior talent and expertise.
McQueen Financial Advisors served as an exclusive financial advisor, and Luse Gorman as legal counsel to Harborstone Credit Union, on this transaction.
Panoramic Capital Advisors served as an exclusive financial advisor, Buchalter as legal counsel, and Hillworth Securities provided a fairness opinion to SaviBank.
Harborstone Credit Union president and CEO Geoff Bullock said: “As a member-owned financial institution, the request from our members for more access and ever-improving technology has been at the forefront of our minds.
“This acquisition achieves that and more. The wisdom of Harborstone Credit Union’s leadership over the past decade has enabled us to both purchase SaviBank with cash that we have saved just for this purpose and to remain very well capitalized.
“Mike Cann and the Savi team have been building something special up north, and we believe the best is yet to come for both organizations as we come together.”
