Washington Federal Inc.
) announced the completion of the acquisition of Oregon-based
South Valley Bancorp Inc. Per the deal, with the amalgamation of
both the parent companies, South Valley's wholly-owned subsidiary
- South Valley Bank & Trust - will also merge with Washington
Federal's wholly-owned subsidiary - Washington Federal.
STERLING FIN WA (STSA): Free Stock Analysis
WASH FEDL INC (WAFD): Free Stock Analysis
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Washington Federal further stated that the combined company will
have 190 offices in 8 western states. Furthermore, the combined
company will have access to a bigger branch network, higher
liquidity and increased lending capacity, which will propel its
profitability going forward.
The acquisition will add roughly $514 million loans and $743
million deposits to Washington Federal's financials. It will also
strengthen the company's foothold in southern and central Oregon,
which in turn will drive its banking and commercial real estate
Washington Federal has always been inclined towards mergers and
acquisitions due to its capital strength. In 2011, the company
acquired Albuquerque, New Mexico-based Charter Bank and Phoenix,
Arizona-based failed Western National Bank.
In 2010, Washington Federal acquired all of the deposits of
Horizon Bank of Bellingham, Washington. Also, the company
acquired First Mutual Bancshares Inc. and First Federal Banc of
the Southwest Inc. in 2008 and 2007, respectively.
These mergers and acquisitions have helped Washington Federal
increase its assets, workforce and branch network, which in turn
has strengthened its market share substantially. We expect the
company to maintain this growth strategy.
Currently, Washington Federal retains a Zacks #3 Rank, which
translates into a short-term Hold rating. Among its peers,
Sterling Financial Corporation
) also retains a Zacks #3 Rank.