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.