SEATTLE--(BUSINESS WIRE)--
HomeStreet Bank and its holding company, HomeStreet, Inc. (NASDAQ:HMST)
have entered into two separate merger agreements pursuant to which
HomeStreet Bank will acquire Seattle-based Fortune Bank for
approximately $27.0 million, and Yakima National Bank, based in Yakima,
Wash., and parent holding company, YNB Financial Services Corp. (“Yakima
National”), for approximately $10.3 million. The combined company had
approximately $3.0 billion in assets on a pro forma basis as of June 30,
2013.
The proposed transactions, which have been approved by the boards of
directors of HomeStreet, Fortune and Yakima National, are subject to
Fortune’s and Yakima National’s shareholders’ approval and regulatory
approval. The proposed transactions are expected to close in the fourth
quarter of 2013.
“We are excited to have the Fortune Bank and Yakima National Bank teams
join ours. We admire their approach to community banking and we share
their commitment to community service and a desire to provide great
service and real value to their customers,” said HomeStreet Bank
President and CEO Mark K. Mason. “Beyond the growth in customers, loans
and deposits, these acquisitions bring us two teams of seasoned
community bankers and two talented executives in David Straus, CEO of
Fortune Bank, and Jeff Newgard, CEO of Yakima National Bank. We are
looking forward to their help in growing our franchise in Puget Sound
and in Central and Eastern Washington. We expect both transactions to be
accretive to earnings per share within the first year following the
acquisitions. We are working closely with teams from both banks to
ensure that Fortune Bank and Yakima National Bank customers retain the
high standard of care and service they have come to expect from their
banks.”
As of June 30, 2013, Fortune Bank operates two branches in Seattle and
Bellevue with total assets of approximately $142 million, loans of $103
million and deposits of $121 million. These locations will continue to
operate as Fortune Bank branches until the transaction is completed,
after which those customer relationships will transition to existing
HomeStreet branches in Seattle and Bellevue.
This merger with HomeStreet Bank gives our organization the chance to
grow with our clients,” said Fortune Bank President and CEO Dave Straus.
“We will have a wider range of products and a greater capacity to lend,
and we will also be able to continue the same great customer service and
active community involvement.”
Yakima National Bank currently operates four branches in the Central and
Eastern Washington cities of Yakima, Selah, Sunnyside and Kennewick.
Total assets were approximately $125 million, loans were $94 million and
deposits totaled $114 million as of June 30, 2013. These locations will
operate as Yakima National Bank branches until the transaction is
completed, at which time they will become part of the HomeStreet Bank
network.
“I believe this transaction is very positive for Yakima National Bank’s
shareholders, customers, and employees,” said President and CEO Jeff
Newgard. “We are excited to become a part of the HomeStreet
organization, and we look forward to using HomeStreet Bank’s resources
to strengthen and expand our business while continuing to provide
locally focused banking services to our customers. Increased lending
limits, combined with access to HomeStreet’s vast array of consumer and
commercial products, offer a great benefit to our customers and
communities we serve. HomeStreet’s progressive approach to community
banking complements Yakima National Bank’s high-touch relationship
banking that our customers have come to expect, and will allow for
seamless integration of our teams, as well as greater market penetration
and growth.”
The acquisition of the two banks, along with the pending acquisition of
retail deposit branches from AmericanWest Bank, will increase the net
number of HomeStreet retail deposit branches to 29.
Forward-Looking Statements
This press release contains forward-looking statements concerning
HomeStreet, Inc. and HomeStreet Bank and their operations, performance,
financial conditions and likelihood of success. All statements other
than statements of historical fact are forward-looking statements. In
particular, statements about the timing and likelihood of the
consummation of the acquisitions, shareholder approvals, regulatory
approvals and the successful integration of their employees and
customers, as well as statements that anticipate these events, are
forward looking in nature. Forward-looking statements are based on many
beliefs, assumptions, estimates and expectations of our future
performance, taking into account information currently available to us,
and include statements about the competitiveness of the banking
industry. Such statements involve inherent risks and uncertainties, many
of which are difficult to predict and are generally beyond HomeStreet’s
control. Forward-looking statements speak only as of the date made, and
we do not undertake to update them to reflect changes or events that
occur after that date.
We caution readers that a number of factors could cause actual results
to differ materially from those expressed in, implied or projected by,
such forward-looking statements. Among other things, our ability to
obtain regulatory approval and our ability to retain the assets and
customers related to these acquisitions, and our ability to realize the
benefits expected from these transactions, may be limited due to future
risks and uncertainties including, but not limited to, changes in
general economic conditions that impact our markets and our business,
actions by the Federal Reserve affecting monetary and fiscal policy,
regulatory and legislative actions that may constrain our ability to do
business, and the competitive environment. A discussion of the factors
that we recognize to pose risk to the achievement of our business goals
and our operational and financial objectives more generally is contained
in our Annual Report on Form 10-Q for the period ended March 31, 2013.
These factors are updated from time to time in our filings with the
Securities and Exchange Commission, and readers of this release are
cautioned to review those disclosures in conjunction with the
discussions herein.
About HomeStreet, Inc.
HomeStreet, Inc. (NASDAQ:HMST) is a diversified financial services
company headquartered in Seattle, Washington, and the holding company
for HomeStreet Bank, a state-chartered, FDIC-insured savings bank.
HomeStreet Bank offers consumer and business banking, investment and
insurance products and services in the Pacific Northwest, California and
Hawaii. Certain information about our business can be found on our
investor relations web site, located at http://ir.homestreet.com.
HomeStreet, Inc.
Terri Silver, 206-389-6303
VP, Investor
Relations & Corporate Communications
terri.silver@homestreet.com
http://ir.homestreet.com
Source: HomeStreet, Inc.