Continuing its transformation into a commercial banking company, Interwest Bancorp of Oak Harbor, Wash., said this week that it would buy Liberty Bay Financial Corp. in Poulsbo, Wash., for $48.9 million in stock.

Interwest, a $2 billion-asset thrift company, would exchange 11 shares of its stock for each Liberty share. The $21-a-share deal is valued at 2.5 times Liberty's book value and 18.8 times earnings.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.