Sterling Savings Bank, the wholly-owned subsidiary of Washington-based Sterling Financial Corp, is acquiring the banking operations of First Independent Investment Group, including wealth management and trust operations, currently partly owned by the Firstenburg family.

Under the terms of the agreement, Sterling will take on certain assets and liabilities, including all deposits and banking operations of First Independent, for an initial premium of $8 million. This is in addition to the net value of the acquired assets and assumed liabilities at the time of closing.

An additional premium of up to $17 million will be paid over an 18-month period following closing, based on the credit performance of the acquired loans and the amount of reductions in core deposits and wealth management income. First Independent will retain around $49 million worth of existing loans and $34 million in the other assets, which are not included in the deal.

The deal, expected to complete early next year, will add around $455 million in assets under management from First Independent's wealth and trust business, which include 14 branches, to Sterling. 

In a statement, First Independent said that the sale is meant to ensure that the Southwest Washington area had a community-focused bank.

"While the family has invested significantly in the bank, additional outside capital is essential to create a franchise capable of competing in the marketplace. After exploring options, the family chose to offer the company to Sterling," said Jeanne Firstenburg, president and chief executive of First Independent.

The transaction remains subject to regulatory approval.