Seattle-based Washington Federal, the holding company for Washington Federal Bank, has agreed to acquire California-based Luther Burbank and its fully-owned subsidiary, Luther Burbank Savings, in an all-stock deal valued at around $654 million.

The transaction is expected to expand Washington Federal’s franchise into California.

The combined entity will have total assets of around $29 billion, total loans of $23 billion, and total deposits of $22 billion. It will have more than 210 locations in Washington, Oregon, California, Utah, Idaho, Nevada, Texas, Arizona, and New Mexico.

Brent Beardall — Washington Federal President and CEO said: “One thing I have learned is that you do not find the right deal – the right deal finds you. That is the case here.

“It checks all the boxes. It creates scale. It creates a contiguous footprint from Seattle to Austin. Unlike so many comparable transactions, this transaction does not negatively affect our tangible book value and is accretive to forward-estimated earnings and capital.”

Post-closing, Luther Burbank shareholders will exchange each of their shares in the bank holding for 0.3353 shares of Washington Federal.

Victor Trione — Luther Burbank board chairman said “This truly is a great opportunity for our shareholders to reinvest in a larger pro forma institution with a shared legacy and long-term perspective on value, customers and community.”

As of 30 September 2022, Washington Federal had $20.8 billion in total assets, $16.3 billion of total loans, and $16 billion in total deposits while Luther Burbank had total assets of $7.9 billion, $6.9 billion of total loans, and $5.8 billion in total deposits.

Expected to close as early as Q2 2023, the deal is subject to shareholder and regulatory approval and other customary conditions.

  Banking acquisition news, Banking industry news, Brent Beardall, California, Luther Burbank, Luther Burbank Savings, USA, Victor Trione, Washington, Washington Federal, Washington Federal Bank