CLEVELAND and EVERETT, Wash. – U.S bank KeyCorp, parent company of marine lender KeyBank USA, has agreed to buy EverTrust Financial Group Inc. to expand its presence in the Seattle and Puget Sound area, according to a joint press release from the companies Friday.
The transaction, subject to approval by EverTrust shareholders and by appropriate state and federal banking regulators, is expected to close in the fourth quarter. Under the terms of the agreement, EverTrust shareholders would receive an aggregate price of $194.7 million or a cash distribution of $25.60 per EverTrust common share, the companies said.
The merger elevates Key to the second largest financial institution in Everett, in terms of deposits, and the fourth largest within Snohomish County. Key's presence in King County, where the majority of its present KeyCenters are located, would also expand. EverTrust's principal lines of business include commercial real estate, small business, private banking and asset management, all of which are among Key's core businesses.
The acquisition, when completed, will add 12 banking offices in Snohomish and King Counties to Key's 73 KeyCenters in its Seattle-Cascades District, which spans 12 counties. With assets of $770 million, EverTrust's primary market is Snohomish County, where Key currently operates eight offices.
"This is a strategic fill-in acquisition for Key that will significantly enhance our presence in the Puget Sound region's important Everett market and along the I-5 corridor," said Jack Kopnisky, head of Consumer Banking for Key. "The office network expands our reach in high-growth, attractive communities contiguous to our current operations, thereby offering great opportunities to expand Key's small business, middle-market, retail and high-net-worth businesses."