Harborstone Credit Union recently entered into the second of
two bank purchase agreements in six months by agreeing to purchase Savi
Financial Corp., Inc., the bank holding company for SaviBank, in an all-cash
transaction. The credit union previously agreed to acquire First Sound Bank in
August of last year.
SaviBank customers will become members of Harborstone Credit
Union with full access to Harborstone’s product and service offerings. The
acquisition helps Harborstone grow its presence in the Skagit County-area
marketplace, diversify its assets, and add superior talent and expertise,
according to the credit union.
“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,” Savi Financial President
and Chairman Michal Cann said in a press release. “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.”
The acquisition was approved unanimously by both banks’
boards of directors, stipulating that Savi Financial will liquidate, dissolve
and distribute its remaining assets to stockholders upon completion, which is
expected in the fourth quarter.
The price per share for Savi is estimated between $16 and $17
on a pre-tax basis, but the effective price per share will depend on the financial
performance and market conditions affecting Savi Financial between the signing
and closing dates.
“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,” Harborstone President and CEO Geoff Bullock said. “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.”
Once both bank acquisitions close, Harborstone will acquire
approximately $7 billion in new assets, including approximately $2.7 billion in
assets, $2 billion in loans, $2.3 billion in shares and deposits and will have
27 branches in seven counties in Washington state. Its First Sound Bank
acquisition is expected to close in the second quarter.