FS Bancorp in Washington to buy Pacific West Bancorp in Oregon
FS Bancorp in Mountlake Terrace, Wash., has agreed to buy Pacific West Bancorp in West Linn, Ore.
The $3.2 billion-asset FS Bancorp said in a press release that it will pay $34.6 million in cash and stock for the $386 million-asset Pacific West. The deal, which is expected to close in the third quarter, priced Pacific West at 95% of its tangible book value.
The acquisition “represents a compelling step forward in our continued expansion across the Pacific Northwest,” Matthew Mullet, FS Bancorp’s president, said in the release. “Pacific West has built a customer-focused commercial banking franchise with deep roots in the Portland-Vancouver metro area. Combining our organizations brings together complementary strengths that enhance our ability to serve our customers and communities.”
The transaction is expected to be 7.4% accretive to FS Bancorp’s 2027 earnings per share. It should take between two and three years for FS Bancorp to earn back an estimated 2.2% dilution to its tangible book value.
FS Bancorp plans to cut 30% of Pacific West’s annual noninterest expenses. It expects to incur $5.6 million of pretax merger-related expenses.
D.A. Davidson and Breyer & Associates advised FS Bancorp. Raymond James and Buchalter APC advised Pacific West.