Harborstone Credit Union entered into a definitive agreement to acquire First Sound Bank (OTCPK:FSWA) from shareholders for $22 million on August 1, 2023. In connection with the transaction, the shareholders of First Sound Bank will receive approximately $6.90-$7.10 in cash for each share of First Sound Bank common stock, subject to adjustment based on the equity value at closing. Following the completion of the transaction, First Sound Bank will liquidate and dissolve and distribute its remaining assets to its stockholders.

The transaction is anticipated to be completed in the first quarter of 2024 subject to receiving all regulatory approvals, approval by the shareholders of First Sound Bank and other customary closing conditions. The transaction has been unanimously approved by the boards of directors of both institutions. As of November 15, 2023, First Sound Bank's shareholders approved the merger. The transaction is anticipated to be completed in the first half of 2024. As of March 22, 2024, the transaction is expected to close in the second quarter of 2024.

Harborstone Credit Union was advised in the transaction by McQueen Financial Advisors as exclusive financial advisor and Luse Gorman, PC as legal counsel. First Sound Bank was advised by Tom Hayes and Michael Engellant of D.A. Davidson & Co. as exclusive financial advisor and Tom Sterken of Keller Rohrback, L.L.P. as legal counsel.

Harborstone Credit Union completed the acquisition of First Sound Bank (OTCPK:FSWA) from shareholders on May 16, 2024.