Harborstone Credit Union Completes Acquisition of First Sound Bank

Lakewood and Seattle, Washington – Harborstone Credit Union (“Harborstone”) and First Sound Bank (OTCPK: FSWA) announced today that they have completed the purchase and assumption transaction whereby Harborstone, headquartered in Lakewood, Washington, has acquired substantially all the assets and assumed substantially all the liabilities, including all deposits, of First Sound Bank, headquartered in Seattle, Washington.

First Sound Bank’s banking office will continue to operate as a branch of Harborstone. As a result of the transaction, Harborstone now has approximately $2.1 billion in assets, $1.5 billion in loans, $1.8 billion in shares and deposits and has 16 branches throughout King, Pierce, and Thurston Counties in Washington.

“We are excited to announce the acquisition of First Sound Bank. We look forward to being a part of the Seattle communities that First Sound Bank serves and welcome First Sound Bank’s customers and employees into the Harborstone family,” said Geoff Bullock, President and CEO of Harborstone Credit Union. “This acquisition further expands our footprint in King Country, and it will result in expanded product, service and technology offerings for First Sound Bank’s customers as well. We mutually feel that this is an ideal fit, as we are both deeply engaged in the communities we serve, have a strong organizational culture, and a sincere care for our members’ and customers’ financial wellness. Additionally, we are committed to working closely together with our First Sound Bank partners to work towards as smooth a transition as possible.”

Marty Steele, President and CEO of First Sound Bank added, “We are thrilled to become part of Harborstone Credit Union.  Harborstone has a long history of investing in its communities and providing excellent customer service to its members.  This merger will be very beneficial to our customers and employees, as it will provide access to a broader range of products and services, an expanded branch network, and greater commercial lending capacity.  We look forward to partnering with the Harborstone team as we grow our presence in Seattle and King County.”

Harborstone Credit Union was advised in the transaction by McQueen Financial Advisors as exclusive financial advisor and Luse Gorman, PC as legal counsel. First Sound Bank was advised by D.A. Davidson & Co. as exclusive financial advisor and Keller Rohrback, L.L.P. as legal counsel.

About Harborstone Credit Union

Harborstone Credit Union is a Washington-chartered and federally insured credit union headquartered in Lakewood, Washington. Founded in 1955 as McChord Federal Credit Union, serving airmen on McChord Air Force Base (now Joint Base Lewis McChord), Harborstone Credit Union has grown to become one of the largest credit unions in Washington State with over 89,000 members and approximately $2.1 billion in total assets. Harborstone Credit Union has 16 branches located throughout King, Pierce, and Thurston counties and offers members a full range of products and services with the aim to assist members in achieving financial well-being through innovative financial solutions that foster thriving communities and economic vitality. For more information, please visit www.harborstone.com.

Forward Looking Statements

Certain statements in this news release contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties, and other factors, such as delays or unanticipated costs in the liquidation of First Sound Bank, the businesses of Harborstone Credit Union and First Sound Bank may not be integrated successfully or such integration may take longer to accomplish than expected, the expected cost savings and any revenue synergies from the merger may not be fully realized within the expected timeframes, disruption from the merger may make it more difficult to maintain relationships with customers, associates, or suppliers, any of which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by the companies or any person that the future events, plans, or expectations contemplated by the companies will be achieved. All subsequent written and oral forward-looking statements concerning the companies or any person acting on their behalf is expressly qualified in its entirety by the cautionary statements above. None of Harborstone Credit Union or First Sound Bank undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, to reflect circumstances or events that occur after the date the forward-looking statements are made.