BOISE, Idaho--(BUSINESS WIRE)--Boise-based Western Capital Bank and Lake Oswego, Oregon-based Northwest Bank today announced the completion of a definitive agreement whereby Northwest Bank will merge with Western Capital Bank, pending regulatory and shareholder approval. The merger will expand the reach and resources of both banks while providing greater operational and regulatory efficiencies.
“Western Capital Bank and Northwest Bank operate in their markets in an almost identical manner,” said Jeff Gow, Chairman, Western Capital Bank. “Bringing these two banks together to form a larger and stronger organization focused on two of the most dynamic metropolitan areas in the Northwest will provide their business and professional clients with greater products and services at a time when the region is entering its next growth cycle,” he continued.
Western Capital Bank was formed in March 2008 to focus on the Boise Metropolitan market, and had $158 million in assets and $32.7 million in capital as of December 31, 2011. Northwest Bank was formed in June 2005 to focus on the Portland Metropolitan market, and had $104 million in assets and $8.8 million in capital as of December 31, 2011. Together, the combined banks will have one of the strongest capital ratios of any bank operating in the Northwest.
“The merger is a great opportunity for us to provide our clients increased credit capacity and geographically expanded access to tailored banking products and services in two of the Northwest’s fastest growing cities. This partnership presents an almost seamless merger opportunity because of the two bank’s similar operating styles,” said Northwest Bank President and CEO Karen Lantz. “For most of our clients, there will be little to no change in the way they do business with us, or in the Bank staff handling their relationship, yet the bank’s capacity to do business with them will be greatly enhanced.”
Rob Perez, President and CEO, Western Capital Bank, echoed those words in describing how the merger would affect Western Capital Bank’s clients. “This merger is about two community banks that complement each other in size, products, service commitment, and their focus on the Northwest.”
The new bank will adopt the name Northwest Bank and will continue to operate from their current locations in Lake Oswego, OR and Boise, ID. Kevin Kelly, Chairman of Northwest Bank, will join the board of Western Capital Corp.
The transaction is structured as a merger of Northwest Bank with Western Capital Bank through an exchange of cash and stock. Most shares of Northwest Bank will be converted into shares of Western Capital Corporation, a bank holding company, which owns 100% of Western Capital Bank. Smaller share lots will be paid in cash.
The merger is subject to receipt of all necessary regulatory and shareholder approvals. The merger is expected to be completed in the third quarter of 2012.