First Financial Northwest, the holding company for First Financial Northwest Bank, announced it is expanding its footprint in the Seattle area with its agreement to purchase four branches and the opening of two more.
The company announced it entered into a definitive agreement to purchase four branches located in Snohomish and King counties, the two counties in and just north of the Seattle area.
With the acquisition, the bank will assume about $102 million in deposits based on deposits as of December 31, 2016, for a deposit premium of 3.125%, based on deposit balances at the time the transaction closes. First Financial Northwest will not acquire any loans as a part of its transaction.
The deal is subject to regulatory approvals and customary closing conditions. The bank will also assume certain liabilities such as checking, savings, IRAs and CDs belonging to households and small business customers who live in the local area.
It will also acquire the retail locations along with their ATMs. One branch property is owned while the other three properties are leased. The transaction will close in the third quarter of 2017.
But the bank’s expansion does not end with this acquisition. It also announced it received regulatory approval to open two additional branches.
The first branch will be in the Crossroads area of Bellevue, Washington at 15600 NE 8th Street, Bellevue, Washington. The second branch will be in Downtown Bothell, Washington at The Junction, adjacent to the historic McMenamins Anderson School. The first location is expected to open in the second quarter 2017 while the second will open in the fourth quarter this year.
“This acquisition and the new branches are a natural extension of our current expansion in King and Snohomish counties and complements our strategy to grow core deposits and reduce our cost of funds,” said Joseph Kiley, First Financial Northwest Bank president and CEO.