Olympia-based Heritage Financial, parent of Heritage Bank, has acquired Puyallup-based Valley Bank
The deal, announced Tuesday, will give the combined company $1.6 billion in assets and an increased presence in the South Sound.
The transaction has been approved by both boards of directors and now faces approval by Valley shareholders and bank regulators. The formalities should be complete by the third quarter.
Valley Bank, with a conservative reputation, currently operates eight full branches and one drive-up facility. It counts assets of approximately $242 million. Heritage operates 34 branches located primarily along the I-5 corridor, located from Bainbridge Island south to metropolitan Portland.
When complete, the transaction will increase the Heritage presence in Pierce County to 17 branches. The bank will mark a 6.58 percent market share in the county, giving it sixth place in the area, ahead of U.S. Bancorp and Umpqua Bank.
Valley shareholders will receive a mix of cash and Heritage shares in a 50 percent/50 percent mix of $19.50 per share plus 1.3611 share of Heritage common stock.
David Brown, Valley CEO, has been nominated to serve on the Heritage board of directors.