American bank holding company Timberland Bancorp has inked an agreement to acquire South Sound Bank in a mixture of cash and stock transaction.

Pursuant to the terms of the agreement, South Sound Bank will merge with and into Timberland’s subsidiary, Timberland Bank.

For each share of South Sound Bank, its shareholders will receive 0.7460 of share of Timberland common stock and $5.68825 in cash.

Headquartered in Olympia, Washington, South Sound Bank is a chartered bank with approximately $186.9m in assets as of 31 March 2018.

As of 31 March 2018, Timberland had nearly $1bn in assets, approximately $880.4m in deposits and total shareholders’ equity of $117.8m.

Timberland president and CEO Michael Sand said: “We look forward to welcoming the customers of South Sound Bank to Timberland Bank and working with its employees.  This business combination leverages our unique talents and abilities within the Puget Sound market area and strengthens our position in the marketplace.”

Timberland said that the proposed deal is likely to be accretive to its earnings within the first year once the transaction is closed. It will be immediately accretive to tangible book value per share at completion of transaction.

After securing all relevant regulatory approvals, and the satisfying customary closing conditions, the transaction is expected to conclude during the fourth calendar quarter of 2018.