Washington Federal in Seattle consented to purchase Luther Burbank Corp. in a $654 million, all-stock quote to broaden into California.
Luther Burbank runs 10 branches in California and one in Washington. It likewise has 6 loan production workplaces in California and one in Oregon. It has properties of $7.9 billion, overall loans of $6.9 billion, and deposits of $5.8 billion.
The $20.8 billion Washington Federal stated the offer might close as quickly as the 2nd quarter of 2023. The combined organization would have about $29 billion of properties, $23 billion of loans and $22 billion of deposits with 210 areas in Washington, California, Oregon, Idaho, Utah, Nevada, Arizona, New Mexico and Texas.
“One thing I have learned is that you do not find the right deal — the right deal finds you. That is the case here,” Brent Beardall, president and CEO of Washington Federal, stated in a release revealing the offer Sunday. “It checks all the boxes. It creates scale. It creates a contiguous footprint from Seattle to Austin,” Texas.
“Unlike so many comparable transactions, this transaction does not negatively affect our tangible book value and is accretive to forward-estimated earnings and capital,” Beardall included.
Keefe, Bruyette & Woods was monetary consultant and Davis Wright Tremaine LLP legal counsel to Washington Federal. Piper Sandler & Co. was monetary consultant and Holland & Knight LLP legal counsel to Luther Burbank.