Timberland Bancorp in Hoquiam, Wash., has agreed to buy South Sound Bank in Olympia, Wash.

The $1 billion-asset Timberland said in a press release Wednesday that it will pay about $47 million in cash and stock for the $187 million-asset South Sound, based on Timberland’s closing price on Tuesday. The deal is expected to close in the fourth quarter.

The deal is expected to be accretive to Timberland’s earnings within the first year after closing. It should be immediately accretive to tangible book value per share.

The merger “leverages our unique talents and abilities within the Puget Sound market area and strengthens our position in the marketplace,” Michael Sand, Timberland’s president and CEO, said in the release.

Timberland was advised by Keefe, Bruyette & Woods; Breyer & Associates; and Silver, Freedman, Taff & Tiernan. South Sound was advised by Wedbush Securities and Keller Rohrback.

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