Washington Federal (WAFD) Agrees To Acquire Anchor Bancorp
Zacks Investment Research | Apr 11, 2017 09:44PM ET
Washington Federal, Inc. (NASDAQ:WAFD) entered into an agreement to acquire Anchor Bancorp (NASDAQ:ANCB) in an all-stock transaction. The deal is valued at $63.9 million and is approximately equal to Anchor Bancorp’s tangible book value as of Dec 31, 2016.
The transaction, which is expected to close in the third quarter of 2017, is subject to regulatory and shareholder approval.
Terms of the Agreement
The exchange ratio of shares will depend on the average volume-weighted price of Washington Federal’s common stock for the 20 trading days ending on the fifth trading day right before the closing date, subject to a negotiated collar.
Financial Impact
Upon successful completion, Washington Federal expects the transaction to be immediately accretive to its tangible book value per share by 19 cents per share. Also, the transaction is likely to be accretive to earnings per share by 5 cents per year.
Once the merger is closed, the combined company will have 248 offices in eight western states. Notably, based on the financial results as of Dec 31, 2016, the combined company will have total assets and deposits of approximately $15.3 billion and $11 billion, respectively.
Washington Federal’s CEO, Brent J. Beardall said, "This transaction will enhance Washington Federal's presence in southwestern Washington by partnering with a bank that has a similar heritage and values. The merger will allow us to establish a commercial banking presence in downtown Tacoma. We look forward to working with Anchor's professional and experienced bankers to increase our market position and extend them a warm and enthusiastic welcome. Once we complete the transaction, our focus will be on continued great service to every single Anchor and Washington Federal client."
Shares of Washington Federal gained 44.5% in the last one year, outperforming 27.6% growth recorded by the Zacks categorized Zacks Investment Research
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