Harborstone Credit Union Announces Agreement to Acquire SaviBank

Posted by Britt Bonanzino on March 22, 2024

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 SaviBank 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 Harberstone Credit Union, we believe we are maximizing value to our shareholders who have supported us over the years.”

The transaction is anticipated to be completed in the fourth quarter of 2024, subject to receiving all regulatory approvals, approval by stockholders of Savi Financial, and other customary closing conditions.

Harborstone Credit Union was advised in the transaction by McQueen Financial Advisors, as exclusive financial advisor, and Luse Gorman, PC, as legal counsel. SaviBank was advised by Panoramic Capital Advisors, Inc., as exclusive financial advisor, Buchalter, A Professional Corporation, as legal counsel, and Hillworth Securities LLC provided a fairness opinion.

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 15 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.

 Forward Looking Statements

Certain statements in this news release contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties, and other factors, such as the businesses of Harborstone Credit Union and SaviBank may not be integrated successfully or such integration may take longer to accomplish than expected, the expected cost savings and any revenue synergies from the acquisition may not be fully realized within the expected timeframes, disruption from the acquisition may make it more difficult to maintain relationships with customers, associates, or suppliers, the required governmental approvals of the acquisition may not be obtained on the proposed terms and schedule, or Savi Financial stockholders may not approve the acquisition, any of which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by the companies or any person that the future events, plans, or expectations contemplated by the companies will be achieved. All subsequent written and oral forward-looking statements concerning the companies or any person acting on their behalf is expressly qualified in its entirety by the cautionary statements above. None of Harborstone Credit Union, Savi Financial or SaviBank undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, to reflect circumstances or events that occur after the date the forward-looking statements are made.

Posted in Regional Member News, Washington.