Covina savings and loan Simplicity Bancorp Inc. announced Monday that it has entered into an agreement to be purchased by Seattle bank HomeStreet Inc. in an all-stock deal. The combined company will have about $4.1 billion in assets under management.
Under the terms of the transaction, Simplicity shareholders will receive one share of HomeStreet’s stock for each share of Simplicity they own, though that ratio could be adjusted. Simplicity is one of just four remaining savings and loans based in Los Angeles County.
“We are very excited about this merger and the opportunities we expect from the combined company,” Simplicity Chief Executive Dustin Luton said in a Sept. 29 press release announcing the deal. “We also believe our customers and communities will be excited about this merger, especially as they become more aware of what the combined organization can offer in expanded products and services and increased community involvement.”
Simplicity, formerly Kaiser Federal Bank, operates seven branches in Los Angeles and San Bernardino counties. It has assets of $879 million. Simplicity shares closed Monday at $16.50, but were up 5 percent to $17.31 in after-hours trading.