OLYMPIA — The parent company of Anchor Bank will not merge with Washington Federal as previously announced. Instead, the Lacey-based company is now set to merge with FS Bancorp of Mountlake Terrace in a stock and cash deal valued at $77 million.
FS Bancorp operates 1st Security Bank. Anchor Bancorp and Seattle-based Washington Federal, which first announced their merger in April 2017, called it off Tuesday, according to a news release.
Addressing the failed merger, Anchor President and Chief Executive Jerry Shaw said Wednesday that Washington Federal had “regulatory issues that were going to take them a while to get past.”
As for the merger with FS Bancorp, Shaw said they had “found an equally good partner,” with similar bank cultures devoted to community and customers.
