The holding company for AmericanWest Bank has agreed to purchase Bank of the Northwest, which operates four branches in the Puget Sound area.
The $17 million transaction is expected to close during the third quarter.
The Bellevue, Everett, Tacoma and Issaquah offices of Bank of the Northwest will be relabeled AmericanWest , Chief Executive Officer Scott Kisting said.
Kisting is also CEO of Starbucks Bancshares Inc., which acquired Spokane-based AmericanWest in December. Starbucks, which also owns a small bank in Minnesota, injected $185 million in new capital into AmericanWest.
Starbucks has an additional $500 million, and officers have said repeatedly they expect to build on the 58-branch AmericanWest network.