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Sound Credit Union and Washington Bancorp, Inc. announce strategic acquisition

TACOMA, WA (September 21, 2018) — Sound Credit Union and Washington Bancorp, Inc. (OTC Pink “WGTB”), the holding company for the Bank of Washington, are pleased to jointly announce a strategic acquisition between the financial institutions – the first of its kind in Washington State history.  The transaction will be structured with Sound Credit Union purchasing substantially all of the assets and assuming substantially all of the liabilities of the Bank of Washington.

The transaction has been unanimously approved by the boards of directors of both institutions and is subject to regulatory approval, approval by the shareholders of Washington Bancorp, Inc. and other customary approvals. The transaction is anticipated to be completed in the first quarter of 2019. It is anticipated that WGTB shareholders will receive approximately $6.40 in cash per share, based on the outstanding shares as of the date of the Purchase agreement.  The combined company will have approximately $1.7 billion in assets, $1.3 billion in loans, $1.5 billion in deposits and operate 29 branches throughout King, Pierce, Snohomish and Thurston Counties.

Don Clark, Sound Credit Union’s President and CEO commented, “We are excited to announce the acquisition of Bank of Washington’s assets.  This combination will help us further expand our footprint in Snohomish and King Counties, accelerate our business and mortgage lending efforts, and add great employees. We feel the value and cultures of both companies are very similar with a strong commitment to customers and the communities in which we serve.”

Marty Steele, Washington Bancorp, Inc.’s President and CEO added, “We are enthusiastic about this partnership because of the expanded opportunities it brings to our customers, our employees and our communities.  This deal rewards our long-term shareholders who have supported us for many years.  As a larger and stronger financial institution with a significantly higher legal lending limit, we will be better able to compete in today’s competitive environment and serve our customers.  Sound Credit Union is a strong local financial institution with a long history of meeting the financial needs of both businesses and consumers in the greater Puget Sound market.”

Sound Credit Union was advised in the transaction by Howard & Howard as legal counsel.  Washington Bancorp, Inc. was advised by D.A. Davidson & Co. as financial advisor and Keller Rohrback, LLP as legal counsel.


About Sound Credit Union

Sound Credit Union was founded in 1940 and today is one of Washington State’s largest credit unions. With 26 full-service branch  locations throughout the Puget Sound area, Sound provides over 170,000 members with authentic and trusted financial support and  services. Sound is driven by the purpose of standing with members, employees and the community through all waves of life. For more  information, please visit www.soundcu.com.  

About Washington Bancorp, Inc.

The Bank of Washington is a locally owned, full-service commercial bank headquartered in Lynnwood, Washington. It provides commercial loans, deposit accounts and other quality local banking services to businesses and individuals at its five branches in Edmonds, Lynnwood, Mukilteo, Everett and Redmond and a loan production office in Seattle. For more information about the bank, visit www.the-bank.com.

Contacts

Jennifer Reed, VP/Public Relations
Sound Credit Union
800.562.8130 | jreed@soundcu.com

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