Harborstone Credit Union Announces Agreement to Acquire SaviBank
Subject to Regulatory Approval
Mar 23, 2024: Lakewood and Mount Vernon, Washington – Harborstone Credit Union announced today that it has entered into a purchase and assumption agreement with SaviBank, headquartered in Mount Vernon, Washington, and its parent holding company, Savi Financial Corporation, Inc. (“Savi Financial”). Pursuant to the agreement, Harborstone Credit Union will purchase substantially all assets and assume substantially all liabilities of SaviBank.
The transaction has been unanimously approved by the boards of directors of both institutions. Following the completion of the transaction, SaviBank and Savi Financial will each dissolve and liquidate, and distribute its remaining assets to its stockholders. The transaction is Harborstone Credit Union’s second announced bank purchase, with its pending acquisition of Seattle, Washington-based First Sound Bank, which was entered into on August 1, 2023, and is expected to close in the second quarter of 2024.
When finalized, Harborstone Credit Union will have, including with the acquisition of First Sound Bank, approximately $2.7 billion in assets, $2.0 billion in loans, $2.3 billion in shares and deposits, and will have 27 branches located throughout Skagit, Whatcom, Island, San Juan, King, Pierce, and Thurston Counties. The effective price per share cannot be determined precisely prior to the closing date and will depend, among other things, on the financial performance and market conditions affecting Savi Bank during the period between signing and closing. However, management currently estimates that the price per share on a pre-tax basis will fall within a range of $16 to $17 per share of Savi Financial Corporation common stock.
SaviBank customers will become members of Harborstone Credit Union with full access to Harborstone’s expansive products and services. The acquisition helps Harborstone Credit Union grow its presence in the Skagit County-area marketplace, diversify its assets, and add superior talent and expertise.
Geoff Bullock, President & CEO of Harborstone Credit Union, commented, “As a member-owned financial institution, the request from our members for more access and ever-improving technology has been at the forefront of our minds. This acquisition achieves that and more. The wisdom of Harborstone Credit Union’s leadership over the past decade has enabled us to both purchase SaviBank with cash that we have saved just for this purpose and to remain very well capitalized. Mike Cann and the Savi team have been building something special up north, and we believe the best is yet to come for both organizations as we come together.”
Michal Cann, Chairman and President of Savi Financial Corporation added, “We look forward to working with Harborstone Credit Union to continue our tradition of fostering meaningful customer relationships while having a positive impact in our local communities. We are deeply focused on providing resources and services for our customers to succeed, and believe that the additional services, products and locations Harborstone Credit Union provides will help us continue to meet the financial needs of our customers. Through the unique structure of this acquisition by Harborstone Credit Union, we believe we are maximizing value to our shareholders who have supported us over the years.”
About Harborstone Credit Union
Harborstone Credit Union is a Washington-chartered and federally insured credit union headquartered in Lakewood, Washington. Founded in 1955 as McChord Federal Credit Union serving airmen on McChord Air Force Base (now Joint Base Lewis McChord), Harborstone Credit Union has grown to become one of the largest credit unions in Washington State with over 88,000 members and approximately $1.9 billion in total assets. Harborstone Credit Union has fifteen branches located throughout King, Pierce, and Thurston counties, and offers members a full range of products and services with the aim to assist members in achieving financial well-being through innovative financial solutions that foster thriving communities and economic vitality. For more information, please visit www.harborstone.com.
About Savi Financial Corporation Inc. and SaviBank
Savi Financial Corporation is the bank holding company which owns SaviBank. SaviBank began operations April 11, 2005, and has 10 branch locations in Anacortes, Burlington, Bellingham, Concrete, Mount Vernon (2), Oak Harbor, Freeland, Sedro-Woolley, and Friday Harbor, Washington, and a Mortgage Loan Production Office in Olympia. SaviBank provides loan and deposit services to customers who are predominantly small and middle-market businesses and individuals in and around Skagit, Island, Whatcom and San Juan counties. As a locally-owned community bank, we believe that when everyone becomes Savi about their finances, our entire community benefits. For additional information about SaviBank, visit: www.SaviBank.com
About McQueen Financial Advisors
McQueen Financial is a nationwide financial advisory firm serving financial institutions since 1999. McQueen has advised on ~25% of all Credit Union / Credit Union Mergers nationwide, annually.
Transaction Leads
Dan Martin
Director of Transaction Advisory & Valuation
Andre Gard
Associate
Noah Erxleben
Analyst