Savi Financial Corporation, Inc. the bank holding company for SaviBank, yesterday announced that it has signed a definitive merger agreement whereby Lakewood, WA. based Harborstone Credit Union will acquire SaviBank in an all-cash transaction. The transaction is structured as a purchase agreement with Harborstone Credit Union purchasing substantially all assets and assuming substantially all liabilities of SaviBank.
The transaction has been unanimously approved by the boards of directors of both institutions. Following the completion of the transaction, Savi Financial will liquidate and dissolve and distribute its remaining assets to its stockholders.
The transaction is Harborstone Credit Union’s second announced bank purchase, with its pending acquisition of Seattle, Washington-based First Sound Bank, which was entered into on August 1, 2023. The First Sound Bank transaction is expected to close in the second quarter of 2024.
When finalized, the combined institution will have, including with the acquisition of First Sound Bank, approximately $2.7 billion in assets, $2.0 billion in loans, $2.3 billion in shares and deposits and will have 27 branches throughout Skagit, Whatcom, Island, San Juan, King, Pierce, and Thurston counties. The effective price per share cannot be determined precisely prior to the closing date and will depend, among other things, on the financial performance and market conditions affecting SaviBank during the period between signing and closing. However, management currently estimates that the price per share on a pre-tax basis will fall within a range of $16 to $17 per share of Savi Financial Corporation common stock.
SaviBank customers will become members of Harborstone Credit Union with full access to Harborstone’s expansive product and service offerings. The acquisition helps Harborstone Credit Union grow its presence in the Skagit County-area marketplace, diversify its assets, and add superior talent and expertise.
“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,” said Michal D. Cann, Chairman and President of Savi Financial. “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.”
Geoff Bullock, President & CEO of Harborstone Credit Union, commented, “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.”
The transaction is anticipated to be completed in the fourth quarter of 2024 subject to receiving all regulatory approvals, approval by the stockholders of Savi Financial, and other customary closing conditions.
Harborstone Credit Union was advised in the transaction by McQueen Financial Advisors, as exclusive financial advisor, and Luse Gorman, PC, as legal counsel. SaviBank was advised by Panoramic Capital Advisors, Inc., as exclusive financial advisor, Buchalter, A Professional Corporation, as legal counsel, and Hillworth Securities LLC provided a fairness opinion.
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