In the latest sign of its continuing appetite for acquisitions, Washington Mutual Inc. has agreed to buy $122.6 million-asset Utah Federal Savings Bank, based in Ogden.
Because Utah Federal is privately held, the two institutions refused to disclose the purchase price. However, analyst R. Jay Tejera of Dain Bosworth Inc. put the deal's value at between $11 million and $12 million.
The all-stock deal, announced last week, is expected to close in the second quarter. It will add five traditional thrift branches to the 16 thrift offices and one loan center Washington Mutual already operates in and around Ogden and Salt Lake City.
Seattle-based Washington Mutual, which has assets of $21.6 billion, entered Utah last year when it opened four branches in Fred Meyer superstores.
Two weeks later, it acquired Olympus Capital Corp., parent of a federally chartered thrift with assets of $392.3 million.
"The addition of Utah Federal will further improve our competitive position in Utah, a state where we had no presence just a little over a year ago," said Washington Mutual chairman and chief executive Kerry Killinger.
Mr. Killinger has repeatedly said his company is interested in acquiring more thrifts and banks in the states where it operates. In addition to Utah and Washington, they are: Oregon, Idaho, and Montana.
Washington Mutual also is interested in California acquisitions, Mr. Killinger has said, but it has been unable to find an institution there at a price it considers attractive.
Knowledgeable sources said Washington Mutual was one of four companies interested in California Bancshares before U.S. Bancorp announced a deal last month to buy it for 2.5 times book value. Washington Mutual officials declined, as a matter of policy, to comment.
