In Brief: Interwest of Wash. Agrees to Pay $13M for Bank

Interwest Bancorp said last week that it has an agreement to buy Kittitas Valley Bancorp, Ellensburg, Wash., for about $13 million.

Oak Harbor, Wash.-based Interwest, with $2.1 billion of assets, would pay Kittitas shareholders $72 cash or 1.714 share for each share of Kittitas stock. The deal, expected to close in the fourth quarter, is for about 3.2 times Kittitas' book value.

Kittitas, with $46 million of assets, ranks among Washington's strongest community banks. For the quarter ended March 31, it returned 1.86% on assets and 21.07% on equity.

Fast-growing Interwest also has deals pending to buy Pacific Northwest Bank, Seattle, and Pioneer Bancorp, Yakima, Wash. When the three transactions are completed, Interwest would have $2.5 billion of assets and 54 branches in Washington.

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