FS Bancorp, the holding company for 1st Security Bank of Washington, successfully closed its previously announced acquisition of Anchor Bancorp and its Anchor Bank subsidiary.

Under terms of the merger, FS Bancorp will pay aggregate consideration to Anchor shareholders of 725,585 shares of FS Bancorp common stock and $30.8 million in cash. For each share of Anchor common stock, each Anchor shareholder will receive 0.2921 shares of FS Bancorp common stock and $12.40 in cash, and cash in lieu of any fractional shares.

The merger will extend 1st Security’s footprint throughout Southwest Washington. The addition of the nine Anchor branches and one loan production office, FS Bancorp will have 21 branch offices and nine loan production offices.

“1st Security Bank is dedicated to offering the best banking experience possible, and we are excited to significantly expand our customer base in Washington,” said Joseph C. Adams, CEO of FS Bancorp. “We welcome the customers, employees and shareholders of Anchor to the FS Bancorp family.”

Raymond James & Associates served as financial advisor to FS Bancorp, while Keller Rohrback served as its legal counsel. Keefe, Bruyette, & Woods acted as financial advisor to Anchor, while Breyer & Associates and Silver, Freedman, Taff and Tiernan served as its legal counsel.

1st Security Bank provides loan and deposit services primarily to small and middle-market businesses and individuals in Western Washington through its 21 bank branches and nine loan production offices.