Sound Community Bank’s parent company, Sound Financial Bancorp, Inc., has agreed to acquire the Sequim, Port Angeles and Port Ludlow retail branches of Columbia Bank.
Employees at the locations will become employees of Sound Community Bank, according to a press release from the company.
Sound plans to consolidate its existing Sequim branch into the nearby Sequim Village branch of Columbia Bank. In Port Angeles the Columbia Branch will relocate eight blocks to the east into the Sound Community Bank branch. No location changes are anticipated in Port Ludlow.
The transaction is expected to close in the third quarter of this year after regulatory approval from the Federal Deposit Insurance Company and the Washington State Department of Financial Institutions and the satisfaction of customary closing conditions.
“We are very excited to expand our franchise on the Peninsula,” said Laurie Stewart, president and CEO of Sound Community Bank.
“The acquisition extends our ability to meet the needs of businesses and individuals throughout the region while continuing our l
long-term commitment to serving the community.”
Columbia was not looking for a buyer, said Melanie Dressel, president and CEO of Columbia Bank and Columbia Banking System, Inc.
“After careful consideration, we determined that it made sense,” Dressel said.
“Among consideration in this decision was the treatment of our employees and customers going forward.
“With Sound’s long history on the Peninsula, they have a commitment to these communities and a well-known reputation as a good employer.”
Sound Community Bank anticipates receiving approximately $30 million of deposits and $1 million of loans from the transaction.
Sound Community Bank will pay Columbia Bank a 2.35 percent total deposit premium on the transaction.
“The cost of funds from these branches is an attractive 14 basis points and the cash received will be used to pay down FHLB borrowings in the short term,” according to Sound’s press release.
“Therefore, the transaction is expected to be accretive by the end of 2014. The branch facilities are being acquired at book value.
Sound Financial Bancorp, Inc., a bank holding company established in August 2012, is the parent company of Sound Community Bank, established in 1953 and headquartered in Seattle, with full-service branches in Seattle, Tacoma and Mountlake Terrace, as well as Sequim and Port Angeles.
