RENTON, Wash. - In a significant move within the financial sector, Global Federal Credit Union ("Global") has agreed to purchase First Financial Northwest (NASDAQ:FFNW) Bank, a subsidiary of First Financial Northwest, Inc. (NASDAQ GS: FFNW). The all-cash transaction is valued at $231.2 million, with adjustments expected. This definitive agreement, unanimously approved by both companies' boards of directors, will see Global acquiring most of the assets and assuming most of the liabilities of the Renton-based bank.
The acquisition is a strategic expansion for Global, enhancing its business and commercial services and strengthening its branch presence in Western Washington, a region where it has operated for 40 years. First Financial Northwest Bank customers will transition to become members of Global Federal Credit Union, gaining access to its broad range of products and services.
Geoff Lundfelt, President and CEO of Global, emphasized the shared commitment to service and community engagement between the two institutions, highlighting the benefits of the merger for service delivery and growth in the market. He also noted the transaction's financial benefits, projecting accretive future earnings for Global.
Joseph W. Kiley III, President and CEO of First Financial Northwest Bank, remarked on the century-long trust the bank has built with its customers and communities, expressing confidence in the transaction's ability to deliver value to shareholders and benefits to customers and employees.
The transaction is expected to close in the fourth quarter of 2024, subject to regulatory approvals, approval by First Financial Northwest shareholders, and other customary closing conditions. Until completion, both entities will operate independently.
Global Federal Credit Union, established in 1948, serves over 750,000 members with operations across five states, Italy, and 77 branches. First Financial Northwest Bank, with roots dating back to 1923, has grown into a full-service commercial bank with assets of $1.53 billion as of September 30, 2023.
The acquisition is based on a press release statement and is advised by McQueen Financial Advisors and Honigman LLP for Global, with Janney Montgomery Scott LLC and Fenimore Kay Harrison LLP advising First Financial Northwest.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.