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Washington Federal (WAFD) Agrees to Acquire Anchor Bancorp
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Washington Federal, Inc. (WAFD - Free Report) entered into an agreement to acquire Anchor Bancorp in an all-stock transaction. The deal is valued at $63.9 million and is approximately equal to Anchor Bancorp’s tangible book value as of Dec 31, 2016.
The transaction, which is expected to close in the third quarter of 2017, is subject to regulatory and shareholder approval.
Terms of the Agreement
The exchange ratio of shares will depend on the average volume-weighted price of Washington Federal’s common stock for the 20 trading days ending on the fifth trading day right before the closing date, subject to a negotiated collar.
Financial Impact
Upon successful completion, Washington Federal expects the transaction to be immediately accretive to its tangible book value per share by 19 cents per share. Also, the transaction is likely to be accretive to earnings per share by 5 cents per year.
Once the merger is closed, the combined company will have 248 offices in eight western states. Notably, based on the financial results as of Dec 31, 2016, the combined company will have total assets and deposits of approximately $15.3 billion and $11 billion, respectively.
Washington Federal’s CEO, Brent J. Beardall said, "This transaction will enhance Washington Federal's presence in southwestern Washington by partnering with a bank that has a similar heritage and values. The merger will allow us to establish a commercial banking presence in downtown Tacoma. We look forward to working with Anchor's professional and experienced bankers to increase our market position and extend them a warm and enthusiastic welcome. Once we complete the transaction, our focus will be on continued great service to every single Anchor and Washington Federal client."
Shares of Washington Federal gained 44.5% in the last one year, outperforming 27.6% growth recorded by the Zacks categorized Northeast Banks industry. The company has also been growing organically with continued improvement in loan balances.
A couple of other favorably ranked stocks in the same space are First Bank (FRBA - Free Report) and Fulton Financial Corporation (FULT - Free Report) .
First Bank witnessed an upward earnings estimate revision of 3.9% for the current year, in the last 60 days. Its share price increased 49.8% in the last six months. The company currently sports a Zacks Rank #1.
Fulton Financial carries a Zacks Rank #2. For the current year, its Zacks Consensus Estimate remained unchanged in the last 60 days. The company’s share price increased 21.1% in the last six months.
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Washington Federal (WAFD) Agrees to Acquire Anchor Bancorp
Washington Federal, Inc. (WAFD - Free Report) entered into an agreement to acquire Anchor Bancorp in an all-stock transaction. The deal is valued at $63.9 million and is approximately equal to Anchor Bancorp’s tangible book value as of Dec 31, 2016.
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The transaction, which is expected to close in the third quarter of 2017, is subject to regulatory and shareholder approval.
Terms of the Agreement
The exchange ratio of shares will depend on the average volume-weighted price of Washington Federal’s common stock for the 20 trading days ending on the fifth trading day right before the closing date, subject to a negotiated collar.
Financial Impact
Upon successful completion, Washington Federal expects the transaction to be immediately accretive to its tangible book value per share by 19 cents per share. Also, the transaction is likely to be accretive to earnings per share by 5 cents per year.
Once the merger is closed, the combined company will have 248 offices in eight western states. Notably, based on the financial results as of Dec 31, 2016, the combined company will have total assets and deposits of approximately $15.3 billion and $11 billion, respectively.
Washington Federal’s CEO, Brent J. Beardall said, "This transaction will enhance Washington Federal's presence in southwestern Washington by partnering with a bank that has a similar heritage and values. The merger will allow us to establish a commercial banking presence in downtown Tacoma. We look forward to working with Anchor's professional and experienced bankers to increase our market position and extend them a warm and enthusiastic welcome. Once we complete the transaction, our focus will be on continued great service to every single Anchor and Washington Federal client."
Shares of Washington Federal gained 44.5% in the last one year, outperforming 27.6% growth recorded by the Zacks categorized Northeast Banks industry. The company has also been growing organically with continued improvement in loan balances.
Currently, Washington Federal carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A couple of other favorably ranked stocks in the same space are First Bank (FRBA - Free Report) and Fulton Financial Corporation (FULT - Free Report) .
First Bank witnessed an upward earnings estimate revision of 3.9% for the current year, in the last 60 days. Its share price increased 49.8% in the last six months. The company currently sports a Zacks Rank #1.
Fulton Financial carries a Zacks Rank #2. For the current year, its Zacks Consensus Estimate remained unchanged in the last 60 days. The company’s share price increased 21.1% in the last six months.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public. Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>