FS Bancorp to Buy Pacific West for $34.6M, Targeting 7.4% EPS Gain
FS Bancorp will acquire Pacific West Bancorp for $34.6 million in stock and cash, creating a combined bank with $3.6 billion in assets and 31 Pacific Northwest branches. The deal issues 430,176 shares and $16.8 million cash and is projected to lift 2027 EPS by 7.4% despite a 2.2% TBV dilution.
1. Merger Terms
FS Bancorp will acquire Pacific West Bancorp in a $34.6 million stock-and-cash transaction. Under the agreement, FS Bancorp will issue 430,176 common shares and pay $16.83 million in cash, with Pacific West shareholders able to elect stock or cash subject to proration.
2. Combined Franchise
On a pro forma basis as of December 31, 2025, the combined company would hold approximately $3.6 billion in assets, $3.0 billion in loans and deposits, and operate 31 branches across Washington and Oregon. Pacific West contributes $386 million in assets with four branches in the Portland-Vancouver metropolitan area.
3. Financial Impact
The merger is expected to be immediately accretive, with a projected 7.4% uplift in EPS in 2027. Tangible book value is forecast to dilute by 2.2% at closing, with an anticipated earnback period of approximately 2.4 years.
4. Closing and Approvals
Both boards have unanimously approved the merger, which is slated to close in the third quarter of 2026. Completion is subject to Pacific West shareholder approval and customary regulatory clearances, with D.A. Davidson & Co. and Raymond James advising on the financial side and Breyer & Associates PC and Buchalter APC serving as legal counsel.