Puget Sound Bank has inked a definitive agreement to acquire Core Business Bank in a deal valued at $8.4m with a mixture of 20% cash and 80% Puget Sound Bank common stock.
This value represents 132% of Core’s 31 December 2012 net book value. For the first full year of operations, the acquisition is likely to be accretive to Puget Sound Bank’s earnings per share.
As per the terms of the agreement, Jim Schuler, current Core Business Bank board member, will join the Puget Sound Bank board of directors.
Subject to customary closing conditions including concerned regulatory approval as well as shareholder approval, the transaction is expected to complete during the second quarter of 2013.
Following closing of the transaction, the integrated company will have over $330m in assets, while the combined net worth of the two companies will be nearly $44m with a total risk based capital ratio of 15%, more than the FDIC consideration of 10% for being a well-capitalized bank.
As of 31 December 2012, Core Business Bank had $64m in total assets, $57m in deposits, net income for the year of $122,000 and zero non-performing loans.
Puget Sound Bank was advised by Monroe Securities and Foster Pepper, while Core Business Bank was served by McAdams Wright Ragen, and Keller Rohrback.
Based out of Bellevue, Washington, Puget Sound Bank offers an array of competitive financial products with better customer service and a consultative/partnership approach to its clients.