Frontier Financial buys Oregon bank
Published 11:06 pm Monday, July 30, 2007
EVERETT – Frontier Financial Corp. recently announced its acquisition of Bank of Salem, an Oregon-based commercial bank with assets of $210.2 million.
“We are very pleased that Salem has made the decision to join the Frontier organization,” John Dickson, president and chief executive of Frontier, said in a prepared statement. “Salem is one of the most profitable and efficient financial institutions in Oregon. They produce high performance results similar to Frontier.”
Frontier Financial is the $3.6 billion holding company for Everett-based Frontier Bank. The transaction is expected to be completed in the fourth quarter of 2007, pending receipt of Salem’s shareholder approval and regulatory approvals.
All employees of Salem are expected to be retained in the merger.
Terms of the agreement call for Salem shareholders to receive a fixed price of $21 worth of Frontier common stock for each share of Salem common stock at closing, provided the average closing price of Frontier for 10 days prior to closing is between $21.21 and $29.17. Options to purchase Salem’s common stock will be cashed out at closing.
Based upon the price range of Frontier stock between $21.21 and $29.17, the total value of the stock consideration and options is approximately $68.9 million.
Bank of Salem announced second quarter results on July 16, which included year-to-date net income of $2.5 million. Founded in 1991, it has three branches operating as Bank of Salem, Bank of Portland and Bank of Tigard, Ore.
“We are very excited to join the Frontier Bank team,” said Jon Johnson, president and chief executive of Bank of Salem. “As we considered strategic alternatives, it was clear that a combination with Frontier is a great long-term choice for our shareholders, customers and employees.
“With the benefit of Frontier’s expanded resources and a broader array of commercial bank products and services, our team will be better equipped to serve our existing customer base and communities for years to come.”
Reporter Michelle Dunlop: 425-339-3454 or mdunlop@heraldnet.com.
