In a monumental move poised to reshape the financial landscape of Washington State, Sound Credit Union and Washington Business Bank (OTCPK: WBZB) have officially announced a definitive acquisition agreement. Under this transformative deal, Sound Credit Union, a distinguished not-for-profit financial institution, will acquire Washington Business Bank, a premier commercial bank headquartered in Olympia, Washington.
Structured as a comprehensive purchase agreement, Sound Credit Union will acquire substantially all assets and assume liabilities of Washington Business Bank, ushering in a new era of growth and prosperity for both entities.
This strategic acquisition marks a pivotal moment for Sound Credit Union, allowing it to expand its footprint in the Olympia market while diversifying its assets and tapping into additional talent and expertise. Notably, customers of Washington Business Bank will seamlessly transition to become valued members of Sound Credit Union, gaining full access to its extensive suite of products and services.
Don Clark, President and CEO of Sound Credit Union, expressed enthusiasm about the acquisition: “Washington Business Bank has been a stalwart for local business owners for over two decades. We are committed to delivering these new members the same exceptional service, an expanded range of products and services, and the myriad benefits of credit union membership to empower their businesses and families.”
The acquisition has received unanimous approval from the boards of directors of both institutions, heralding a new era of collaboration and growth. Following the completion of the transaction, Washington Business Bank will undergo liquidation and dissolution, with its remaining assets distributed to shareholders.
Upon finalization, the combined institution will boast approximately $3.0 billion in assets, $2.3 billion in loans, $2.5 billion in deposits, and will serve a membership base exceeding 170,000. With 27 branches spanning King, Pierce, Snohomish, and Thurston Counties, Sound Credit Union is poised to become a formidable force in the regional financial landscape.
As part of the acquisition, shareholders of Washington Business Bank will receive approximately $34.00 – $36.00 in cash for each share of Washington Business Bank common stock, subject to specified adjustments at closing.
Washington Business Bank, known for its comprehensive suite of deposit, lending, and cash management services for businesses, will seamlessly integrate into Sound Credit Union’s expansive offerings. Sound Credit Union members can anticipate enhanced borrowing, saving, investment, and insurance options, coupled with robust account management and support tools.
Jon M. Jones, President and CEO of Washington Business Bank, affirmed the institution’s commitment to its clientele: “Since our inception, we have been dedicated to supporting small business owners across Washington in their pursuit of success. We are confident that our customers will find the same level of partnership and dedication with the Sound Credit Union team.”
The transaction, slated for completion in the fourth quarter of 2024, remains subject to regulatory approvals, shareholder consent from Washington Business Bank, and customary closing conditions.
Post-acquisition, Sound Credit Union will maintain Washington Business Bank’s existing downtown Olympia location at 5th Avenue and Franklin Street, complementing its branch at Martin Way and Lilly Road to provide members with enhanced accessibility and convenience.
Sound Credit Union received financial advisory services from ALM First and legal counsel from Honigman, LLP, while Washington Business Bank was advised by D.A. Davidson & Co. and legal counsel from Lane Powell PC.
As Sound Credit Union and Washington Business Bank join forces, they are poised to redefine the financial landscape of Washington State, embodying a shared commitment to innovation, excellence, and unparalleled service.
