First Financial Northwest, Inc.’s (NASDAQ: FFNW) stock has increased significantly since a significant commercial deal was approved by regulators. The stock increased 11% in the most recent pre-market session, hitting $21.70.
Approval for Purchase Given
In partnership with Global Federal Credit Union, First Financial has announced that Global Federal has obtained the required National Credit Union Administration (NCUA) approval. The acquisition of the majority of First Financial Northwest Bank’s assets and liabilities, a First Financial affiliate, is covered by the permission.
This permission comes after obtaining the required endorsements from the Washington State Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC), and in accordance with the conditions specified in the Purchase and Assumption Agreement dated January 10, 2024.
Completion of Asset Sales Anticipated in 2025
The asset deal is anticipated to occur in early Q2 2025 and represents a major strategic shift for both companies. After it is finished, Global Federal will run First Financial Northwest Bank’s branches as a distinct business, keeping the First Financial name until the systems and brand are fully integrated later this year.
Expansion of Services and Branch Network
This transaction will significantly extend Global Federal’s business and commercial services, benefiting all of its member businesses. Additionally, the relocation expands Global’s branch network in Western Washington, where the credit union has operated for more than 40 years. In order to access a greater variety of financial goods and services, First Financial Northwest Bank customers will join Global Federal Credit Union.
Actions After an Asset Sale
First Financial will concentrate on closing down its business after the asset sale is finished and allocating the remaining net assets, including the net cash proceeds from the deal. Soon after the purchase closes, an initial payout to shareholders is anticipated. This approval promises long-term advantages for both firms and is a turning point in their strategic realignment.