Timberland Bancorp, the Hoquiam-based parent company of Timberland Bank, has completed the acquisition of South Sound Bank, which was based in Olympia.

A merger agreement was first announced back in May.

Timberland is a much larger organization. South Sound has two branches, one in West Olympia and the other in Lacey. Those two will bring the total number of Timberland branches to 24. The plan is to begin branding those two as Timberland branches starting next spring, said Michael Sand, president and CEO of Timberland.

“These will be two, well-run community banks doing more together than they would do individually,” said Sand.

He said South Sound has been particularly strong in the business lending. Timberland makes those loans, too, but tends to focus on retail banking, mortgage loans and refinancing. The two approaches will make a good complement to each other and the increase in assets will allow the bank to make larger loans, he said.

Under the terms of the agreement, South Sound Bank shareholders will receive 904,826 shares of Timberland common stock and $6.9 million in cash (at a per share consideration of .7460 of a share of Timberland common stock and $5.68825.

South Sound Bank had $181.9 million in assets, $122.6 million in loans and $155.2 million in deposits at June 30, 2018.

Timberland reportedly has about $1 billion in assets.

“We are pleased to welcome the customers and employees of South Sound Bank to the Timberland family. We look forward to deepening existing customer relationships with the enhanced and additional services offered by Timberland Bank,” said Sand.

All employees will be retained, Sand said.

“We are pleased to welcome Daniel D. Yerrington to the Boards of Directors of Timberland and Timberland Bank,” said Jon C. Parker, Chairman of the Boards. “Dan was a founding member of South Sound Bank, served as its President and CEO and has extensive leadership and banking experience. He is also actively involved in community activities in Thurston County.”

Timberland dates back to 1915 and and has operations in Grays Harbor, Thurston, Pierce, King, Kitsap and Lewis counties.