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Washington-Based Harborstone Credit Union to Expand With Acquisition of SaviBank

acquisitions

Harborstone Credit Union plans to expand its presence in Washington with an acquisition of SaviBank and its parent holding company, Savi Financial.

The credit union has entered into a purchase and assumption agreement for the transaction, the companies said in a Saturday (March 23) press release.

The transaction was unanimously approved by the board of directors of both institutions, according to the release. Subject to regulatory approvals, Savi Financial stockholders’ approval and other customary closing conditions, it is expected to be completed in the fourth quarter.

In addition to growing its presence in Washington’s Skagit County, the planned acquisition will enable Harborstone Credit Union to diversify its assets and add talent, the release said.

“As a member-owned financial institution, the request from our members for more access and ever-improving technology has been at the forefront of our minds,” Geoff Bullock, president and CEO of Harborstone Credit Union, said in the release. “This acquisition achieves that and more.”

SaviBank’s customers will become members of the credit union and will have full access to its products and services, per the release.

“We are deeply focused on providing resources and services for our customers to succeed, and believe that the additional services, products and locations Harborstone Credit Union provides will help us continue to meet the financial needs of our customers,” Michal Cann, chairman and president of Savi Financial, said in the release.

The announcement of this transaction comes about eight months after Harborstone Credit Union said it plans to acquire Washington-based First Sound Bank, according to the release. That purchase was announced in August, is currently pending and is expected to close in the second quarter.

When the two bank purchases are finalized, Harborstone Credit Union will have $2.7 billion in assets, $2 billion in loans, $2.3 billion in shares and deposits, and 27 branches across seven counties in Washington, the release said.

Credit unions have been pursuing mergers and acquisitions during this time of interchange regulation, digital solutions, new players and evolving consumer preferences, Chuck Fagan, president and CEO at PSCU/Co-op Solutions, wrote in the PYMNTS eBook, “2023: The Year of Strategic Shifts in Business.”

“As credit unions and other industry players look to embrace innovation and invest in tools and technologies to meet the needs and expectations of today’s modern members, consolidation has become a prominent trend — and is poised to continue influencing credit unions and the ways in which they do business next year and beyond,” Fagan wrote.