First Sound Bank has reached a definitive agreement to acquire Bellevue-based Eastside Commercial Bank in a transaction expected to close in the first quarter of 2015.
The merger of Eastside Commercial into First Sound will result in a combined company of more than $130 million in assets.
According to Patrick Fahey, chairman and chief executive officer of First Sound Bank since 2012, the combination of the two companies is expected to be accretive to earnings in the first year. Fahey said, "Our focus during the past few years has been to strengthen First Sound Bank’s capital and credit quality following the economic downturn, and we have emerged as a well-capitalized institution with a high-quality loan portfolio. This transaction will add to our business activity in East King County and accelerate our growth in earning assets."
Kent Chaplin, who has served as interim president of Eastside Commercial Bank, stated, "Both Banks have similar business models, focusing on providing financing and personalized financial services to local small- and medium-sized businesses. Joining with First Sound Bank will strengthen our ability to compete and better serve our customers." Chaplin will join the board of First Sound Bank upon completion of the merger.
The proposed merger is subject to regulatory approval, as well as the approval of the shareholders of both companies.