Sterling Financial Corporation of Spokane has announced that Sterling Savings Bank will buy Vancouver-based First Independent Bank, including all of its deposits and banking operations.
Under the terms of the agreement, Sterling will initially pay a premium of $8 million in addition to the net value of the acquired assets and assumed liabilities at the time of closing. Sterling has agreed to pay First Independent an additional premium of up to $17 million over an 18-month period following closing based on the credit performance of the acquired loans and the amount of any reductions in core deposits and wealth management income.
“We made the difficult decision to sell First Independent because we believe it is the best way to ensure Southwest Washington has a community-focused bank,” said Jeanne Firstenburg, president and COO of First Independent, in a press release. “While the Firstenburg family has invested significantly in the bank, additional outside capital is essential to create a franchise capable of competing in the marketplace. After exploring various options, the family chose to offer First Independent to Sterling, a well-capitalized, Washington-based organization that understands community banking.
“We are confident that our clients, employees and communities will be in good hands,” she added.
Greg Seibly, president and CEO of Sterling Financial Corporation said, “We are pleased to welcome First Independent employees and clients into the Sterling family. First Independent is an important strategic addition for Sterling, which is one of the leading community banks in the Pacific Northwest. First Independent provides an attractive opportunity to acquire a healthy community bank franchise within our identified strategic growth footprint along the I-5 corridor.”
Sterling said the acquisition will add to the bank’s existing franchise approximately $691 million in principally core deposits, $455 million of assets under management from First Independent’s wealth and trust businesses, 14 branches in Washington’s Clark and Skamania counties and two offices in Portland.
The transaction, which is subject to regulatory approval, is expected to be completed early next year.
