LIBERTY LAKE, Wash.—The $5.8-billlon Spokane Teachers Credit Union (STCU) here has agreed to buy the $550-million Community Bank based in Joseph, Ore., the CU reported.
Community Bank has 10 branches in Wallowa, Union, Umatilla, and Baker counties in Oregon, and Walla Walla and Asotin counties in Washington.
The deal, STCU said, has been approved by the boards of both FIs and is awaiting customary regulatory and shareholder approval and other closing conditions. The transaction is expected to close in early 2025. The price of the transaction was not disclosed.
STCU President and CEO Ezra Eckhardt said the proposed transaction fits with the credit union’s commitment to rural communities across its footprint, including many that would otherwise lose access to a local financial institution.
Since 2020, STCU reported it has expanded its branch network in 12 small communities through similar transactions. Eckhardt said in a statement the proposed transaction is part of STCU’s strategy to "expand its footprint, diversify its assets, and add additional talent and expertise" in each of the communities it serves.
"We are committed to making this transaction as seamless as possible for Community Bank customers,” Eckhardt said in the statement. “We look forward to continuing Community Bank’s long tradition of supporting the communities it serves.”
Competitive Environment
“Since our founding in 1955, Community Bank has been proud to support the communities of our region, and the many neighbors who are our customers,” Tom Moran, Community Bank president and CEO, said in a statement. “As the banking and business environment of our region grows increasingly competitive, this transaction with STCU will ensure expanded product offerings, more locations, and a continued high level of services.”
Community Bank made $936,000 in net income through March of 2024 and $6.3 million last year, according to FDIC data.
STCU reported $10.5 million in net income through June of this year and $45.8 million in 2023. The CU’s net income stands at 10.63%.
“Non-organic growth continues to be a priority for community based financial institutions," said Michael Bell, a partner and chair of the Financial Institutions Practice Group at Honigman, LLP. "This year has been very active and I wholeheartedly expect that to continue into 2025.”
Bell has been part of more than 60 whole-bank agreements, plus additional bank branch purchases.
Community Bancshares, Inc. and Community Bank were advised in the transaction by Performance Trust Capital Partners, LLC, as exclusive financial advisor, and Hunton Andrews Kurth, as legal counsel. STCU was advised by Commerce Street Capital, LLC, as exclusive financial advisor, and Farleigh Wada Witt, as legal counsel.
Other Deals to Date in 2024
As CUToday.info reported earlier, other bank acquisitions announced by credit unions to date in 2024 include:
- The $1.52-billion ELGA Credit Union is reaching well beyond its state’s borders to buy the $650-million Marine Bank & Trust, based in Vero Beach, Fla.
- The $2.5-billion Atlanta Postal Credit Union and its subsidiary Center Parc CU are purchasing the $870-million Affinity Bank, based in Covington, Ga.
- The $1.2-billion Pima Federal Credit Union has agreed to purchase the $272-million Republic Bank of Arizona, based in Phoenix.
- The $4.9-billion American Heritage Federal Credit Union here has agreed to buy three branches of LINKBANK, which is headquartered in Camp Hill, Pa., the bank reported.
- The $4.7-billion TDECU in Lake Jackson, Texas, has agreed to buy the $1.2-billion Sabine State Bank and Trust, based in Many, La.
- The $1.9-billion Harborstone Credit Union in Lakewood, Wash., has announced plans to buy Mt. Vernon, Wash.-based SaviBank.
- The $2-billion Empeople Credit Union in Moline, Ill., acquired the $182-million TSB Bank in Lomira, Wis.
- Beacon Credit Union, Wabash, Ind., acquired Mid-Southern Savings Bank of Salem, Ind. for approximately $45 million.
- In Tacoma, Wash., the $2.9-billion Sound Credit Union here has agreed to buy $104-million Washington Business Bank, based in Olympia, Wash.
- The $2.9-billion Advia Credit Union, Kalamazoo, Mich., reached into Illinois with to purchase the $255-million NorthSide Community Bank.
- The $7-billion Hudson Valley Credit Union is purchasing the $593-million Catskill Hudson Bank in Kingston, N.Y., for $28.6 million.
- The $11.8-billion Global FCU in Anchorage, Alaska is buying the $1.5-billion First Financial Northwest Bank in Renton, Wash.
- The $7-billion Hudson Valley Credit Union here is purchasing eight locations from Boston-based Berkshire Bank.
- The $2.98-billion All-In Credit Union in Daleville, Ala. is buying five branches and the book of business from Louisville, Ala.-based 22nd State Bank.