PORTLAND, Ore. (AP) — Washington Federal Inc. of Seattle plans to buy South Valley Bancorp of Klamath Falls and become Oregon’s seventh-largest bank by deposits.
South Valley has 24 branches, most around Medford, Klamath Falls and Bend. It is the state’s 13th largest institution insured by the Federal Deposit Insurance Corp.
The Oregonian (http://bit.ly/HiKzgd) reports that Washington Federal specializes in home mortgages and certificates of deposits. After the merger, it would have 190 locations in eight states.
Under the deal, Washington Federal will give South Valley shareholders $33.7 million in stock — below South Valley’s book value of $66.4 million as of Dec. 31 — with the possibility of additional payments up to $20 million if balances on $39 million in a pool of South Valley loans are collected in full over five years.
Information from: The Oregonian, http://www.oregonlive.com