Sound Financial Bancorp, Inc. (SFBC), parent company of Sound Community Bank, announced Friday that it has entered into an agreement with Columbia Bank to acquire three retail branches located on the Olympic Peninsula in Sequim, Port Ludlow and Port Angeles.
The purchase will increase the Bank's existing deposit market share in Sequim and Port Angeles and will extend the Bank's retail footprint into Port Ludlow. Employees at the locations will become employees of Sound Community Bank.
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.
Laurie Stewart, president and CEO of Sound Community Bank said in a release, "We are very excited to expand our franchise on the Peninsula. The acquisition extends our ability to meet the needs of businesses and individuals throughout the region while continuing our long-term commitment to serving the community."
"Today we announced the sale of our Port Angeles, Port Ludlow and Sequim branches. Although we did not seek out this transaction, after careful consideration, we determined that it made sense," stated Melanie Dressel, Columbia president and CEO.
"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," Dressel said.
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 transaction is expected to be accretive by the end of 2014. The branch facilities are being acquired at book value.
Subject to regulatory approval from the Federal Deposit Insurance Corp. and the Washington State Department of Financial Institutions and the satisfaction of customary closing conditions, the transaction is expected to close in the third calendar quarter of 2014.
With headquarters in Seattle, Sound operates branches in Seattle, Tacoma, Mountlake Terrace, Sequim and Port Angeles.