Washington Federal Buy

Washington Federal(WFSL Quote) agreed to buy First Federal Banc of the Southwest (FFSW Quote) for $24.14 in cash, or $99 million.

The merger is expected to close in the first calendar quarter of 2007, pending the receipt of regulatory approvals and the approval of First Federal's shareholders.

After the merger, Washington Federal will have 138 offices in eight western states with total assets of about $9.4 billion and total deposits of about $5.7 billion.

"We are very pleased to be able to enter the growing New Mexico market through a merger with this fine organization. All existing First Federal branches will continue to operate as usual and we warmly and enthusiastically welcome their employees and customers to the Company," Washington Federal said. "We anticipate this acquisition will be accretive to earnings in 2007 with additional earnings growth through the coming years."

First Federal rose $5.47 to $23.62.