Community banking

Washington Federal to enter California with $654 million acquisition

By Jim Dobbs November 14, 2022, 8:34 a.m. EST 1 Min Read

Washington Federal in Seattle agreed to buy Luther Burbank Corp. to expand into California.

Luther Burbank operates 10 branches in California and one in Washington. It also has six loan production offices in California and one in Oregon. It has assets of $7.9 billion, total loans of $6.9 billion, and deposits of $5.8 billion.

The $20.8 billion Washington Federal said the $645 million, all-stock deal could close as soon as the second quarter of 2023. The combined institution would have about $29 billion of assets, $23 billion of loans and $22 billion of deposits with 210 locations in Washington, California, Oregon, Idaho, Utah, Nevada, Arizona, New Mexico and Texas.

"One thing I have learned is that you do not find the right deal — the right deal finds you. That is the case here," Brent Beardall, president and CEO of Washington Federal, said in a release announcing the deal Sunday. "It checks all the boxes. It creates scale. It creates a contiguous footprint from Seattle to Austin," Texas.

WaFd CEO Brent Beardall — The deal for Luther Burbank "checks all the boxes. It creates scale. It creates a contiguous footprint from Seattle to Austin," said Brent Beardall, president and CEO of Washington Federal.

"Unlike so many comparable transactions, this transaction does not negatively affect our tangible book value and is accretive to forward-estimated earnings and capital," Beardall added.

Keefe, Bruyette & Woods was financial advisor and Davis Wright Tremaine legal counsel to Washington Federal. Piper Sandler was financial advisor and Holland & Knight legal counsel to Luther Burbank.

Deputy Editor, Community Banks, American Banker

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Community banking

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