Heritage Financial Corp. (HFWA: Quote), the holding company of Heritage Bank and Central Valley Bank, Friday said it signed a definitive agreement to acquire Washington-based Northwest Commercial Bank or NCB, for $3 million, or $5.50 per share in cash.
The deal approved by both companies, awaits approval of NCB's shareholders. The deal will see NCB merge with Heritage Bank, said Heritage in a statement.
Brian Vance, CEO of Heitage Financial Corp stated, "We are pleased about the acquisition of Northwest Commercial Bank and our continued growth in Lakewood and Auburn. We believe we can leverage with additional products, capital, and increased lending limits."
In addition, NCB shareholders may receive an additional consideration of $1.8 million, or $3.34 per NCB share based on an earn-out structure, said Heritage. Further, the company also added that NCB will redeem outstanding TARP preferred stock of approximately $2.0 million from the U.S. Treasury.
Thursday, the stock closed at $14.38 on the Nasdaq.
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by RTT Staff Writer
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