PRESS RELEASE
October 01, 2002

 

Contact
Ken F. Parsons, Sr.
Chief Executive Officer
360.459.1100
(360) 459-0137 (fax)

 

First Community Financial Group Completes Acquisition of Harbor Bank

 

First Community Bank adds two branches Pierce County.

 

Lacey, Wash., October 1, 2002 -- First Community Financial Group, Inc., parent company of First Community Bank of Washington (www.fcbonline.com) today announced it has completed its acquisition of Harbor Bank, located in Gig Harbor, Washington, following Harbor Bank shareholder approval on September 20, 2002.

 

Total estimated value of the acquisition is approximately $7 million.

 

Harbor Bank's two branch offices will operate under the First Community Bank name. This will increase First Community Bank's locations to 21 and will significantly expand First Community Bank's market presence in Pierce County.

 

"This agreement continues our strategy of growth in Pierce County", said Ken F. Parsons, Sr., Chairman and CEO of First Community Financial Group and First Community Bank. "The two community-minded organizations will meld together very well. We have complementary cultures and values. We are committed to continue our focus on responding to the financial needs of businesses and individuals with service beyond expectations."

 

The acquisition will provide Harbor Bank customers with a variety of additional banking products and services, including access to mortgage loans and investment services.

"The two companies share a focus of providing highly personalized service and a strong involvement with local communities", said Jon M. Jones, Executive Vice President, First Community Bank. "We intend to bring additional value to Harbor Bank's customers by offering new products, an expanded ATM network and more banking locations."

 

"We will provide customers access to Mortgage lending." added Jones. "There is high demand for mortgages and we plan to aggressively deliver our services and expertise. Customers will also be introduced to the investment arm of First Community Bank, through its subsidiary, FCB Financial Service", Jones continued. "This will allow customers to come to First Community Bank for all of their financial needs."

 

Terms of the Agreement

 

Under the acquisition agreement, Harbor Bank shareholders will receive $10.75 per share in cash for each of their shares of Harbor Bank Stock.

 

The boards of directors of both companies have approved the transaction.

 

The combined organization will have assets of approximately $450 million and deposits of nearly $400 million. First Community Financial Group expects this merger to be accretive to earnings per share in 2003.

 

First Community Bank, established in 1979, holds total assets of $371 million and total deposits of $316 million as of June 30, 2002. First Community Bank has 19 financial centers in Southwest Washington and operates a network of 23 ATMs.

 

Harbor Bank was established in 1997 and was headquartered in Gig Harbor. Harbor Bank had two branches with total assets of $80 million and total deposits of $75 million.

Harbor Bank was advised in this transaction by the investment bank of D.A. Davidson & Co. First Community Financial Group was advised by Sandler O'Neill & Partners, L.P.

 

About First Community Financial Group

 

First Community Financial Group is the parent company of First Community Bank, a Washington state-chartered bank recognized for its entrepreneurial approach and distinctive banking solutions. First Community Bank operates in four counties, and is headquartered in Lacey, Washington. For more information, visit www.fcbonline.com.

 

This press release includes forward-looking statements. These statements are identified by the use of words such as "will", "expect", "plan", "anticipate" and other words indicating future occurrences. These forward-looking statements are necessarily subject to risks and uncertainties. Actual results could differ materially from those projected in these forward-looking statements as a result of these risks and uncertainties. The specific risks relating to forward-looking statements in this release include, but are not limited to, the risk that the proposed merger is not consummated and the timing of completion, uncertainties associated with integration of operations and the attendant cost of combining the banks, the ability of the First Community Bank to retain customers of Harbor Bank following the merger, acceptance of First Community Bank's products and services in the marketplace, and intense competition within the retail banking industry.

Back to News Releases