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Sound Credit Union acquiring Bank of Washington in historic deal

By Debbie Cockrell, The News Tribune

Sound Credit Union announced its acquiring Lynnwood-based Washington Bank, with the transaction set for completion next year. Peter Haley, The News Tribune

By Debbie Cockrell, The News Tribune

Tacoma’s Sound Credit Union on Friday announced an agreement to acquire Lynnwood-based Bank of Washington.

The acquisition would make Sound the first credit union in the state to acquire a bank, according to the joint announcement.

“The transaction will be structured with Sound Credit Union purchasing substantially all of the assets and assuming substantially all of the liabilities of the Bank of Washington,” according to the institutions’ news release.

Under terms of the deal, Sound would remain a credit union, with Bank of Washington’s team and customers brought into its institution. The plan is to offer members expanded services and products, as well as additional Sound branch locations.

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Bank of Washington’s branches are in Edmonds, Lynnwood, Mukilteo, Everett and Redmond, with a loan production office in Seattle. Sound Credit Union has 24 branches throughout the Puget Sound region.

“It is anticipated that (Washington Bancorp) shareholders will receive approximately $6.40 in cash per share,” according to Friday’s news release. “The combined company 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.”

Don Clark, Sound Credit Union’s president and CEO, said in the release: “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.”

Marty Steele, Washington Bancorp president and CEO, said: “We are enthusiastic about this partnership because of the expanded opportunities it brings to our customers, our employees and our communities.”

The deal has been approved by the boards of directors of both institutions and is subject to regulatory approval and approval by Washington Bancorp shareholders.

Washington Bancorp is the holding company for the Bank of Washington. The deal is anticipated to be completed in the first quarter of 2019.

KIRO

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