BELLEVUE, Wash. -- Columbia Banking System Inc. said it had signed a letter of intent to buy First American State Bank.

First American has headquarters in Centralia, Wash., and an office in Bellevue, where Columbia is based.

Columbia said it had agreed to pay 150% of First American's adjusted equity capital as of Sept. 30, payable in cash or stock. First American had $30 million in assets and 350 shareholders on that date.

Columbia has $ 130 million in assets and recently completed an $11 million public offering of convertible notes and common stock.

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