Washington Federal (WAFD) in Seattle has agreed to buy 23 Bank of America (BAC) branches in Arizona and Nevada.
The purchase would give Washington Federal a total of 258 branches in eight Western states, according to a Thursday press release. Washington Federal would acquire $610 million of deposits and $4 million of loans in the deal, which is expected to close in the second quarter. The terms were not disclosed.
The deal will "improve the company's deposit mix and reduce overall funding costs," Washington Federal's Chairman, President and Chief Executive Roy Whitehead said in the release.
"When completed, the transaction will represent a significant enhancement of our branch network in Arizona and Nevada," Whitehead said. "All employees from the acquired branches will be offered employment with Washington Federal and every effort will be made to minimize disruptions to customer banking routines at those locations."
The $14.4-billion asset Washington Federal bought 51 branches from Bank of America in the fourth quarter, adding $4 million in deposits and $8.3 million in loans. It experienced a $500 million drop-off in deposits as former Bank of America customers closed or transferred their accounts between the deal's July 2013 announcement and its completion.
The company's fourth-quarter earnings rose 14%, to $40.2 million, despite costs associated with the Bank of America deal.
Bank of America has unloaded a number of branches in an effort to cut costs in recent years, much to the delight of community banks looking for opportunities to expand. Old National Bancorp (ONB) and Chemung Financial (CHMG) also snapped up Bank of America branches in 2013.