SEATTLE, Sept. 26 /PRNewswire-FirstCall/ -- First Sound Bank (BULLETIN BOARD: FSWA) today announced the signing of a definitive asset purchase agreement with Puget Sound Leasing Company, Inc., Bellevue, Washington, in a stock and cash transaction. In connection with the transaction, Puget Sound Leasing Company will operate as a separate division of First Sound Bank. The acquisition of these assets will significantly expand First Sound's presence in the leasing business in Western Washington specifically and the U.S. generally.
Founded in 1985 by Louis A. Secord, Jr. and Richard A. Secord, Puget Sound Leasing Company, Inc. is a Washington corporation that specializes in originating commercial equipment leases that are located throughout the U.S. but concentrated in the states of Washington, California, Arizona and Oregon. The company originates leases through its long-established broker and vendor network, often packaging lease payment streams for sale to commercial banks and retaining the servicing thereafter. As of August 30, 2007, Puget Sound Leasing was servicing over 9,000 individual leases -- representing a lease receivable in excess of $175 million, $50 million of which was held in portfolio.
"We are extremely pleased to team up with Puget Sound Leasing, whose high quality service and attention to detail are hallmarks in the industry," said First Sound Bank Chairman and Chief Executive Officer Don Hirtzel. "This partnership, with a company and management team we have known and trusted for many years, expands and strengthens the presence of First Sound Bank in leasing and will provide Western Washington leasing customers with an opportunity to do their commercial banking with us. Combining Puget Sound Leasing and First Sound Bank allows us to offer our customers a set of unique and sophisticated commercial cash management, leasing and lending products unlike any in the Puget Sound region."
"The move of Puget Sound Leasing Company into First Sound Bank will open the door to a broader array of banking services for our customers," stated Puget Sound Leasing President Louis A. Secord, Jr. "We view the strategic fit with First Sound, its management team and its employees as an excellent enhancement to our leasing operation," added Mr. Secord, who will join the First Sound Bank Board of Directors and, along with the entire team of Puget Sound Leasing Company employees, become part of the bank.
"With Puget Sound Leasing's historical track record of growth, we expect this asset purchase and partnership to add to First Sound Bank's earnings per share and net income in 2008 and beyond," said First Sound Bank President and COO Steve Shaughnessy. "We view this transaction as an excellent way to expand our customer base and more fully serve our current customers."
Subject to the terms of the asset purchase agreement, Messrs. Secord, who are the principal owners of Puget Sound Leasing Company, Inc. and currently own four percent of First Sound Bank stock, will receive a combination of First Sound Bank stock and cash at closing. Upon closing, Messrs Secord and their related interests will collectively own 16 percent of First Sound Bank stock and also will receive a fixed percentage of future profits of the Puget Sound Leasing Division for a period of six years. The transaction will dilute current First Sound Bank shares by approximately 13 percent, which is expected to be offset by EPS accretion post closing. Closing of the transaction is anticipated in the first quarter of 2008, subject to regulatory approval.
First Sound Bank's management will make a presentation to further highlight the transaction via a conference call scheduled for 9:00 a.m. Pacific Standard Time on Thursday, September 27, 2007. Those wishing to join the conference call may do so by dialing 1-888-706-4263. A brief question and answer session will follow the presentation.
Advisors to First Sound Bank leading up to this transaction include: -- Mr. Glen Garrison, Partner to the law firm of Keller Rohrback, LLP and legal counsel to First Sound Bank -- Mr. Robert Rogowski, Managing Director of Corporate Finance for the Seattle-based investment firm of McAdams Wright Ragen, Inc.
Legal counsel to Puget Sound Leasing: Mr. Gordon Crim, Partner to the law firm of Foster Pepper, PLLC
Certain statements in this press release, including statements regarding the anticipated development and expansion of First Sound Bank's business, and the intent, belief or current expectations of the company, its directors or its officers, are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements.
About First Sound Bank
First Sound Bank is a Seattle-based bank offering customized banking for small- to medium-sized businesses, organizations, not-for-profits and professionals in the Puget Sound region. At June 30, 2007, the bank had assets of $160.8 million, loans of $126.6 million, deposits of $130.2 million and shareholders' equity of $29.6 million. Founded by a team of veteran local banking executives, First Sound Bank is committed to delivering personalized service, convenient access and competitive rates to support the needs of the business community. First Sound Bank offers online banking at http://www.firstsoundbank.com/ plus an expansive banking network in the western U.S., as well as ATM banking throughout the country and abroad.
