As part of the deal, Northwest Commercial Bank shareholders receive $5.50 per share, although they have the opportunity to receive an additional $3.34 per share as part of an earn-out structure.
Other details of the acquisition:
-Northwest Commercial Bank President and Chief Executive Kurt Graff will be retained through the end of 2013.
-Northwest Commercial has repaid about $2.1 million in preferred stock and warrants that it had borrowed under the federal government's troubled asset relief program.
-Northwest Commercial's Lakewood and Auburn branches are now part of Heritage Bank. The Lakewood branch will be merged with Heritage's existing Lakewood branch at 10318 Gravelly Lake Drive S.W. in March 2013.