Northrim in Alaska to Buy Alaska Pacific Bancshares

Northrim BanCorp (NRIM) in Anchorage, Alaska, has agreed to buy Alaska Pacific Bancshares (AKPB) in June.

The $1.2 billion-asset Northrim will pay $14.3 million in cash and stock, or $17.28 a share, for Alaska Pacific. About 45% of the consideration involves cash. The companies said Tuesday that the current value of the transaction represents roughly 87% of Alaska Pacific's adjusted book value.

The $177 million-asset Alaska Pacific still has $4.7 million in capital from the Troubled Asset Relief Program, though the preferred shares are held by private investors. Alaska Pacific will redeem those shares before selling to Northrim. The companies expect the transaction to close in the first quarter.

"We expect the transaction … to be accretive to our earnings in 2015," Marc Langland, Northrim's chairman, president and chief executive, said in a press release. "With a solid mix of core deposits and a loyal customer base, the Alaska Pacific franchise will expand our statewide network … into southeast Alaska. … We currently expect to earn back any dilution to our tangible book value in less than one year," added Langland.

Northrim will hold about 11.1% of Alaska's deposits, based on June 30 data from the Federal Deposit Insurance Corp. Wells Fargo (WFC) holds 52.3% of the state's deposits, while First National Bank Alaska holds 19.6%.

Northrim's legal counsel was Davis Wright Tremaine, and Jean-Luc Servat served as an additional consultant. Keefe Bruyette & Woods was Alaska Pacific's financial advisor; Breyer & Associates served as its legal counsel.

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