Posted: Tue, October 30 2012 at 6:14 PM, Updated: Tue, October 30 2012 at 6:31 PM
Premier West Bank will be acquired by Spokane-based AmericaWest Bank for $16.6 million, or $1.65 per share.
Spokane-based AmericanWest Bank said Tuesday it has agreed to acquire all thirty-two Premier West Bank locations in Oregon and Northern California which employs some four hundred people.
It is he largest acquisition to date for AmericanWest with a total cost of about $58 million dollars.
Executives cite tougher regulations on banks being required to carry more capitol, against risk and to stress test their portfolio's.
Both AmericanWest and Premier West top officials believe this change will lead to a better road ahead.
In 2009, Premier West borrowed $41.4 million from the troubled asset relief program, aka T.A.R.P. In June, it missed its 11th dividend payment on the money, bringing the total of missed dividend payments to nearly $5.7 million, according to SNL Financial. The bank has taken several steps to improve performance, including shedding bad loans, laying off some workers and closing 11 of its 44 branches. Now, Premier West bank is profitable again. This new deal by AmericanWest would fully repay the U.S. Treasury’s $41.4 million investment in Premier West. Share holders of premiere west will get $1.65 per share- cash.When the deal closes early next year. Top executives aren't discussing what will happen to current premiere west employees yet.