Dearborn, Michigan-based DFCU Financial is acquiring Florida-based Winter Park National, to expand into central Florida.

DFCU Financial’s third acquisition within Florida in the last two years will expand the credit union’s existing presence in Florida; its existing footprint covers Tampa, St. Petersburg, Naples, and Ft. Myers.

The transaction is expected to be integrated in 2025 and awaits regulatory approval, the companies said. 

DFCU Financial marked its entry into Florida by acquiring Tampa-based First Citrus Bank in January 2023, which boosted the combined entity’s assets past $7 billion. In September 2023, DFCU Financial bought MidWest One Bank’s Naples and Fort Myers operations. The deal resulted in eight DFCU Financial branch locations in Florida.

DFCU Financial has 28 full-service Michigan branches, in metro Detroit, Ann Arbor, Grand Rapids and Lansing.

The latest deal will allow the combined entity to expand its products and services to a broader base of members beyond Michigan, the credit union said.

“Winter Park has been a cornerstone of the Central Florida financial community, and we look forward to building on their legacy by offering our comprehensive, member-centric approach to banking,” Ryan Goldberg, president and CEO of DFCU Financial, said in a statement.

The financial terms of the deal were not disclosed. 

Founded in 2017, Winter Park National Bank serves the Winter Park-Orlando-Kissimmee area offering financial products and services to small and medium-sized businesses, owners, and employees. The commercial bank, with 32 staff members, has two branches in Winter Park and Longwood.

Following the deal, DFCU Financial, established in 1950, plans to retain WPNB’s branch locations while expanding its infrastructure and rebranding Winter Park’s Orlando branches under the DFCU Financial name, the credit union said.

As part of the agreement, Winter Park National’s CEO David Dotherow has been named president of Central Florida, and he will “retain leadership responsibilities” for the former WPNB operations, according to the press release. 

DFCU Financial’s commitment to clients, employees, and communities aligned with Winter Park National’s values, Dotherow said. “Together we look forward to strengthening relationships with our clients and reaching new customers across the region,” he said, adding that “DFCU’s support in maintaining our local leadership and team ensures we’ll continue to grow and serve Central Florida with excellence.”

HAPO Community Credit Union will acquire Community First Bank, a five-branch bank based in Kennewick, Washington, according to a joint announcement.

“This acquisition will enhance HAPO’s capacity to support local economic growth and address the financial needs of residents and businesses more effectively,” HAPO CEO Scott Mitchell said in a prepared statement.

The deal will create a combined institution with $2.9 billion in assets, $2.5 billion in deposits, $2.2 billion in loans and 25 branches across Washington and Oregon.

“This partnership allows us to elevate the services we provide while staying true to our core values of transparency, trust, and a client-first approach,” said Community First CEO Eric Pearson in a prepared statement. “Together, we are creating a stronger future, delivering unmatched financial solutions, more opportunities for our employees, and deepening our commitment to the communities we serve.”

The HAPO-Community First transaction is expected to close in the third quarter of 2025, subject to regulatory approvals, closing conditions and Community First shareholder approval.

As part of the deal, HFG Trust, a wealth management subsidiary of Community First Bank, will be restructured as an independent entity. Current management and staff will remain as is, according to the announcement.

HAPO will enter a strategic partnership with HFG Trust, giving members access to HFG Trust’s wealth management and trust offerings.

Phoenix, Arizona-based OneAZ Credit Union has agreed to acquire 1st Bank Yuma in an all-cash transaction, the companies announced.

The deal will boost OneAZ’s assets past $4 billion, while adding five branches in Yuma, San Luis and Nogales to the credit union’s 20-location footprint. The institutions expect the transaction to close by mid-2025.

“By acquiring 1st Bank Yuma, we’re expanding our ability to offer member-focused services while upholding our core values of community support, financial inclusion, and responsible lending,” Brandon Michaels, OneAZ CEO, told Banking Dive in an email.

1st Bank Yuma, a subsidiary of Western Arizona Bancorp, has carved itself a name in business banking in southern Arizona with its robust commercial and agricultural deposits and lending portfolio, Michaels said. The acquisition aims to combine the bank’s portfolio with OneAZ’s consumer deposits and lending operations to transform OneAZ into the largest commercial lender in Arizona, he added.

“It’s a game changer for us and will allow us to drive prosperity for more Arizonans,” Michaels said.

Financial terms of the deal were not disclosed, but the two organizations are expected to be fully integrated in 2026.

Following the transaction, 1st Bank Yuma CEO Wayne Gale will serve as an executive consultant since his “wisdom about these new markets for OneAZ will be invaluable as we strategically grow to serve more Arizonans,” Michaels said.

“We believe that this partnership is a good fit not only for our customers but also for our dedicated employees and the communities we proudly serve,” Gale said in a statement.

OneAZ doesn’t plan to close any branches because of the acquisition, Michaels said, adding that employees at both the bank and credit union can expect future growth opportunities.

Michaels stressed the importance of digital capabilities and fintech integration, driving banks and credit unions to seek mergers and acquisitions to stay competitive. 

“Rising costs related to compliance, cybersecurity and operations have pushed many financial institutions to want to consolidate as a way to achieve economies of scale,” Michaels said. “By merging or through acquisition, banks and credit unions can … streamline operations and boost profitability in a challenging market, which provides additional resources for more innovative technology as well as community involvement.”

However, higher interest rates, regulatory scrutiny, changing consumer expectations, recession concerns, inflation and global instability have affected M&A activity, leading to a more selective and strategic focus on long-term alignment and stability, Michaels said.

“Regulators are focusing more on risk management governance, leading to heightened scrutiny of any potential deals,” Michaels said. “This has slowed the pace of M&A deals, especially for smaller institutions.”  

The board of directors of OneAZ and 1st Bank Yuma approved the transaction Tuesday after extensive due diligence and collaboration with both teams to ensure the partnership would benefit both, Michaels said.

Charleston, South Carolina-based REV Federal Credit Union has agreed to acquire Spencer, West Virginia-based First Neighborhood Bank.

Following the transaction announced September 3, the $1.1 billion-asset credit union will expand its footprint beyond the Carolinas and gain more than 7,000 new members as it adds First Neighborhood’s five locations to REV’s nearly 20 branches.

“Our mission is Growth with Purpose,” REV CEO Jason Lee said in a statement. “This purpose is centered around member impact, social impact, economic impact and ensuring our long-term survivability.”

“Through this partnership, we want to be actively engaged in the community and create this level of impact in the Mid-Ohio Valley region,” Lee added.

The acquisition will be REV’s third expansion in the last four years – but with two notable changes: It’s REV’s first bank acquisition and its first move outside the Carolinas. REV expanded into North Carolina after it received approval in 2021 to merge with Riegelwood Federal Credit Union and Hamlet Federal Credit Union.

Financial terms of the First Neighborhood deal were not disclosed, nor was there an estimated time frame for closing.

“REV has a proven track record of creating significant impact in the communities it serves,” Dave Righter, First Neighborhood’s CEO, said in a statement. “I’m excited to bring its mission of Growth with Purpose to West Virginia and enhance our ability to serve the financial needs of this region.”

First Neighborhood Bank counted roughly $148 million in assets as of June. 

REV earned roughly $3.3 million for the first half of 2024 — up 2% compared to last year, according to call report data from the NCUA.

U.S. Eagle Federal Credit Union in Albuquerque will acquire nearby Southwest Capital Bank, expanding U.S. Eagle in several markets and delving more deeply into servicing the fast-growing cannabis industry.

Terms of the deal, set to close in the second quarter of 2025, were not disclosed.

“It represents an exceptional opportunity to combine and augment our respective strengths and experience in personal, business and cannabis-related banking as well as deliver unparalleled service to a greater number of people,” U.S. Eagle CEO Marsha Majors and Southwest Capital CEO Chez Steel said in a prepared statement.

The deal will expand U.S. Eagle’s presence in the Las Vegas, Mora and Pecos markets in New Mexico. Both organizations plan to operate as is through mid-2025, at which point U.S. Eagle “is focused on retaining what makes SWCB so special to its employees and customers and will be working hand in hand with the bank’s employees to make any transitions as seamless as possible once we receive approval to integrate the two operations,” the credit union said.

Southwest Capital counts six branches and $475 million in assets, it says. U.S. Eagle has roughly $1.5 billion, according to the Albuquerque Journal.

“Given our over 100-year history of dedicated service to the people of New Mexico, we are delighted to embark on this journey and new chapter with U.S. Eagle Federal Credit Union,” Steel said in a statement seen by CUToday. “Their absolute dedication and commitment to community, service and, most importantly, people align with our ideals in creating an exciting future of opportunity for all.” 

Credit union-bank deals have become increasingly popular in recent years. This is the 17th such deal announced this year, and the second within a week. Fourteen of the transactions have been for whole banks, and another three for partial footprints. Credit unions proposed to buy a record 16 whole banks in 2022, and this year has been on pace to easily surpass that. 

In answering its own question as to why it’s buying a bank and not a fellow credit union, U.S. Eagle said on its website: “The decision to acquire another financial institution is a very complex and strategic decision. Our decision was based on the similarities we both saw in our missions and operations.

“The acquisition of SWCB presents an opportunity to serve an even greater number of new members and aligns with our core values of providing exceptional service and making a positive impact in the communities we serve,” U.S. Eagle wrote.

Spokane Teachers Credit Union will acquire Community Bank, a 10-branch bank based in Joseph, Oregon, the institutions announced.

The 69-year-old bank and its $550 million in assets will join STCU to create a $6.4 billion-asset institution with 49 branches in Washington, Oregon and Idaho.

The transaction is expected to close in early 2025. STCU plans to retain all Community Bank employees if the deal goes through, it said.

“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 CEO Tom Moran said in a prepared statement.

He noted that both institutions “share common core values, with a strong focus on supporting the financial wellbeing of our customers, communities and employees.”

STCU CEO Ezra Eckhardt said the deal aligns with the credit union’s focus on rural communities. 

Existing STCU members who live in northeastern Oregon and southeastern Washington will have more convenient access to in-person banking when Community Bank is brought under its umbrella, the credit union said.

“[F]ace-to-face interaction continues to be an important part of the STCU member experience,” Eckhardt said.

The STCU-Community deal has unanimous support from both institutions’ boards of directors but requires shareholder approval and regulatory approval from the Oregon Division of Financial Regulation, the Washington Department of Financial Institutions, the National Credit Union Administration and the Federal Deposit Insurance Corp.

Grand Blanc, Michigan-based ELGA Credit Union has agreed to acquire Vero Beach, Florida-based Marine Bank in an all-cash transaction that’s expected to close in early 2025, the institutions announced.

The acquisition of $650 million-asset Marine will give $1.5 billion-asset ELGA seven added locations — five banking centers and two loan production offices — and diversify the credit union’s offerings to include commercial banking and treasury management. ELGA specializes in low-income lending.

The purchase price was not disclosed, but Marine Bank investors will receive $43.75 for each share they hold, the credit union said.

The Michigan-Florida pipeline has been perhaps surprisingly fruitful in recent years. ELGA isn’t the only credit union in Grand Blanc (population 7,800) to buy a Florida bank. Cross-town neighbor Dort Financial Credit Union completed its acquisition of West Palm Beach-based Flagler Bank in December 2023.

Two years earlier, Grand Rapids-based Lake Michigan Credit Union bought Tampa-based Pilot Bank for roughly $97 million.

Terry Katzur, ELGA’s CEO, called the deal a “highly complementary transaction.”

“As a community development financial institution, the root of all ELGA CU's member interactions is our focus on personalized solutions that meet the demands and address the issues of our members and the communities we serve,” Katzur said in the release. “Marine Bank is aligned with us in that approach.”

ELGA has pledged to expand Marine Bank’s philanthropic efforts throughout Vero Beach and other communities within its reach — and to maintain all of the lender’s banking centers and jobs. That includes Marine Bank CEO Bill Penney, who will continue as ELGA’s Florida market president after the transaction closes.

“This transaction is an exciting opportunity for Marine Bank to join forces with a like-minded, locally operated organization that shares our values and our commitment to the communities and residents we serve,” Penney said in the release. “With its wealth of knowledge serving communities and individuals that don't typically have access to banking services, we will be able to expand our base of customers in east central Florida.”

Atlanta Postal Credit Union and its subsidiary Center Parc Credit Union have agreed to buy Covington, Georgia-based Affinity Bank in an all-cash transaction, the companies announced.

The final purchase price was not disclosed. However, APCU said it would pay enough so that Affinity Bank can distribute $22.50 per share to its shareholders. 

The transaction is expected to close in the fourth quarter of 2024 or the first quarter of 2025.

“For nearly 100 years, Affinity Bank has successfully served both small businesses and individuals throughout Atlanta and the entire region,” Blake Graham, APCU’s CEO, said in a statement. “Through this agreement, we look forward to welcoming Affinity Bank’s customers as new members and exceeding their expectations in every way as we work to help them financially flourish.”

The deal would give $2.5 billion-asset APCU four added locations, including a branch in Atlanta; two more, southeast of the city; and a loan production office in a northern suburb.

“During our proud history, Affinity Bank has been committed to serving our clients and local communities. Through a consistent level of superior quality service, our dedicated staff has grown a loyal commercial and retail customer base,” said Edward J. Cooney, Affinity’s CEO. “APCU/Center Parc share our core values, and have demonstrated a similar commitment to their members, employees and the communities they serve.”

APCU’s deal for $870 million-asset Affinity is far from the epicenter of this year’s credit union-bank activity. Several banks headquartered in Washington state are involved in acquisitions by credit unions. More are in the Midwest. Texas-based TDECU, as of June, has been the only other credit union in 2024 to announce a whole-bank purchase of an institution based in the Southeast.

Richland, Washington-based Gesa Credit Union plans to acquire Centralia, Washington-based Security State Bank, the institutions announced.

The deal, expected to be completed next year, marked the fourth time in 2024 that a credit union has said it would buy a bank headquartered in the Evergreen State.

The purchase price was not disclosed, but the deal will add 12 branches in Lewis, Thurston, Pacific and Grays Harbor counties to Gesa’s 31-location footprint.

Gesa Credit Union’s deal comes on the heels of three other credit union-bank tie-ups with Washington state connections. Anchorage, Alaska-based Global Federal Credit Union said in January it would buy Renton-based First Financial Northwest Bank. Tacoma-based Sound Credit Union announced in March it plans to acquire Olympia-based Washington Business Bank. And Lakewood-based Harborstone Credit Union said days later that it would acquire Burlington-based SaviBank.

Geography aside, Security State is one of the largest banks to be acquired by a credit union, at more than $606 million in assets. (Gesa, by comparison, counts $5.5 billion.)

The largest bank involved in a credit union deal in 2023 was New Mexico’s $338 million-asset Western Heritage Bank. But so far in 2024, five banks larger than Western Heritage have announced sales to credit unions.

Jeff Cardone, a partner at Luse Gorman who served as legal counsel to Gesa in the deal, told Banking Dive the biggest difference driving credit union-bank deals this year is that — given bank stock values, the interest rate environment and regulatory challenges — there are fewer bank buyers and, as a result, credit unions have filled the gap.

“The reason banks are larger [in 2024] is two-fold,” Cardone said. “Credit unions are the only realistic buyers that could pay cash and absorb the bank’s balance sheet from a purchase accounting standpoint, and the geography for these deals — [primarily] the Pacific Northwest and Florida — have larger bank targets than other market areas, such as the Midwest, which is [composed] of a significant number of small community banks.”

Don Miller, Gesa’s CEO, said the agreement will act as a catalyst for the credit union to continue to expand its footprint and service in the Pacific Northwest. 

"Both Gesa and Security State Bank have shared the same values for over 70 years, with an unwavering dedication to the communities we serve,” Miller said.

Dwayne Aberle, president of Security State Bank, said partnering with Gesa will bring expanded products, services, locations and offerings to its customers and employees.

“In today's ever-increasingly competitive banking environment, we feel that this transaction will provide uncountable benefits to these same communities, customers and employees that we have dedicated our long tenure to, and we thank them all for that trust that they have placed in us over all these years,” Aberle said.

Once the deal is complete, Security State Corp. and Security State Bank will each dissolve, and the corporation will distribute its remaining assets to its shareholders.

Tucson, Arizona-based Pima Federal Credit Union has agreed to acquire substantially all of Phoenix-based Republic Bank of Arizona’s assets and liabilities in an all-cash transaction, the companies announced.

The acquisition will boost Pima’s assets to more than $1.5 billion while adding Republic Bank’s Phoenix, Gilbert and Scottsdale locations to the credit union’s nine-branch network.

The transaction is expected to close in the second half of 2024 — after which, Pima will retain Republic Bank’s customers and accounts, while the bank and its parent company, RBAZ Bancorp, intend to dissolve their operations.

“This strategic move is not only rooted in our shared values but also aligns with our growth objectives, presenting an exceptional opportunity to enhance our service to the local community,” Pima CEO Eric Renaud said in a statement. “We are excited to bring our commitment to excellence and dedication to the businesses and people of Maricopa County. Together, leveraging the strengths and talents of both teams, we look forward to creating a positive impact in Maricopa County while continuing to offer an unmatched banking experience in our existing markets.”

Republic Bank, founded in 2007, counts $279 million in assets, $200 million in loans and $250 million in deposits. Upon liquidation and adjustments, the deal is expected to offer RBAZ shareholders roughly $22 per share, according to the release. 

Upon closing, Brian Ruisinger, CEO of RBAZ and Republic Bank, will remain with Pima as head of the Phoenix market, the credit union said.

“We are excited to announce our decision to join forces with Pima. We share similar values, and our partnership with another Arizona-based institution extends our legacy of promoting Shop Local Dine Local Bank Local,” Ruisinger said in a statement.

The move enables the bank to offer its customers a wider array of products and services, he added.

Pima’s proposed acquisition of Republic reflects the need to buy to achieve scale but also bring on added talent and capabilities, said Michael Bell, a partner at law firm Honigman, who has been involved in closing a number of bank-credit union mergers.

“The macro and micro economic forces in the small banks space are forcing small banks to closely examine a sell strategy,” Bell said.

Philadelphia-based American Heritage Credit Union has agreed to buy three southern New Jersey branches from Camp Hill, Pennsylvania-based LinkBank, the acquirer said in a press release.

The acquisition includes roughly $105 million in deposits and $123 million in loans, the credit union said. However, the value of the transaction, expected to close during the second half of 2024, was not disclosed.

LinkBank initially acquired the three New Jersey branches as part of its 2023 purchase of Salisbury, Maryland-based Partners Bank, the credit union said.

LinkBank CEO Andrew Samuel pointed to the branch sale as an example of efficiencies the bank planned from the Partners tie-up.

“We believe this divestiture will enable us to re-allocate capital toward our core Pennsylvania markets and accelerate growth in the robust Northern Virginia and Maryland markets,” Samuel said in a statement.

The three branches, meanwhile, more than double American Heritage’s brick-and-mortar footprint in the Garden State. The credit union counts two locations in New Jersey among its 34 offices. The rest are in Pennsylvania.

“The acquisition from LinkBank underscores our commitment to serving our members with enhanced accessibility and expanded financial offerings,” American Heritage CEO Bruce Foulke said. “We are excited to expand our products and service offerings further into South Jersey and provide our new members and business partners with the same best-in-class service standards we’ve offered for over 75 years.”

The transaction also represents a growing trend in 2024 among deals between banks and credit unions: the partial-bank acquisition. Alabama-based All-In Credit Union agreed in January to buy five branches from 22nd State Bank in the state. And Hudson Valley Credit Union in March said it would acquire eight locations from Boston-based Berkshire Bank.

“The pace of branch transaction has materially increased,” Michael Bell, chair of the financial institutions practice group at the law firm Honigman, told CUToday. “I expect this to continue for the balance of 2024 based on micro and macro-economic factors. The economy is driving sellers to get more efficient and deliver earnings to their shareholders.”  

Lake Jackson, Texas-based TDECU plans to acquire Many, Louisiana-based Sabine State Bank and Trust, the institutions announced in a press release.

The deal, expected to be completed in early 2025, will create a credit union with roughly $6 billion in assets and 471,000 members.

The purchase price was not disclosed, but at more than $1.2 billion in assets, Sabine would be one of the largest banks acquired by a credit union.

Acquiring Sabine would more than double TDECU’s 39-location footprint — Sabine counts 51 branches — and give the credit union access to Louisiana.

The transaction will also expand TDECU’s lending to small-business owners in oil and gas, agriculture and energy, the credit union said. Sabine specializes in commercial loans in those spaces.

“TDECU is on a growth journey to expand across the state of Texas and beyond,” the credit union’s CEO, Isaac Johnson, said in the press release. “This acquisition extends our reach to more communities, diversifies our commercial portfolio and makes our balance sheet even stronger.”

Sabine also has long-standing depository relationships with municipalities and other public institutions including school districts, fire districts and law enforcement agencies.

TDECU’s balance sheet is focused on consumer deposits and lower-risk investment strategies, and Sabine’s commercial operations will further diversify the credit union’s loan concentration, the credit union said. 

“We are excited to become a part of the TDECU family and we share their commitment to strengthening our communities and empowering our customers to build better financial futures,” said Lee McCann, Sabine’s CEO. “Our customers can rest assured that they will continue to experience the best-in-class service they count on from us. Best of all, that service will be enhanced with an even wider array of financial products.”

Jeff Cardone, a partner at Luse Gorman who served as legal counsel to TDECU in the deal, told Banking Dive that although he expects bank mergers to be down in 2024 as a whole, credit unions are increasingly buying banks in the South and Southwest.

“Closely held banks in these rural market areas are willing to explore a business combination with a larger cash buyer, such as a credit union, who wants to preserve bank’s branches, products and services and local community presence,” Cardone said. 

The only bank larger than Sabine to announce a sale to a credit union in 2024 is $1.5 billion-asset First Financial Northwest Bank, which in January reached a deal with Global Federal Credit Union.

Jonesboro, Georgia-based Heritage Southeast Bank, at $1.6 billion in assets, agreed in 2021 to sell to Jacksonville, Florida-based VyStar Credit Union, but the deal was ultimately canceled.

Lakewood, Washington-based Harborstone Credit Union will acquire Burlington, Washington-based SaviBank, the institutions announced in a press release.

The deal, expected to be completed in the fourth quarter, will create an institution with roughly $2.7 billion in assets, $2 billion in loans, $2.3 billion in shares and deposits and will have 27 branches throughout Skagit, Whatcom, Island, San Juan, King, Pierce and Thurston counties.

The purchase price was not disclosed, but the companies estimated that Savi Financial Corp. stockholders may receive between $16 to $17 per share before tax.

The Harborstone/SaviBank deal marks a mash-up of two institutions that made headlines in August 2023. Harborstone that month announced it would buy Seattle-based First Sound Bank.

Two weeks later, Savi received regulatory approval from the Federal Deposit Insurance Corp. to form Orca Bank, a Washington state-chartered commercial de novo.

Savi Financial Chair Michal Cann told Banking Dive the Harborstone deal means “the Orca project will go away."

“We were in the process of putting together a multi-bank holding company, and Orca would have been the first of our other banks involved in that. But with this sale to Harborstone, we're taking a different route,” Cann said.

The acquisition would help Harborstone Credit Union grow its presence in Skagit County, diversify its assets and add talent and expertise.

“The request from our members for more access and ever-improving technology has been at the forefront of our minds. This acquisition achieves that and more,” Harborstone CEO Geoff Bullock said in the release.

Cann said the $593 million-asset Savi Financial believes the additional services, products and locations Harborstone Credit Union provides will help it continue to meet the financial needs of its customers. 

“Through the unique structure of this acquisition by Harborstone Credit Union, we believe we are maximizing value to our shareholders who have supported us over the years,” Cann said in a press release. 

The all-cash transaction is structured with Harborstone purchasing all assets and assuming all liabilities of SaviBank.

The transaction is the third involving a Washington state institution. Tacoma-based Sound Credit Union said it plans to acquire Olympia-based Washington Business Bank. Renton, Washington-based First Financial Northwest Bank is being bought by Anchorage, Alaska-based Global Federal Credit Union, the institutions announced in January.

Tacoma, Washington-based Sound Credit Union will acquire Olympia-based Washington Business Bank, the institutions announced.

The deal, expected to be completed in the fourth quarter, would create an institution with roughly $3 billion in assets, $2.3 billion in loans and $2.5 billion in deposits, and give Sound a deeper presence in Olympia, where it already has one branch.

At closing, Washington Business Bank shareholders will receive roughly $34 to $36 for each share of common stock they own. The $105 million-asset bank will liquidate after the transaction closes.

Buying Washington Business Bank will give Sound Credit Union just one added branch. But credit unions sometimes use bank acquisitions to strengthen their commercial lending programs, and that could be one of the factors involved in the deal.

“There are multiple strategies that seem to transcend most transactions, including geographic expansion and talent and capabilities gain,” Michael Bell, an attorney at Honigman, said in an interview. 

Washington Business Bank has served as a “cornerstone” for business owners in its market for more than 20 years, Sound said.

“We look forward to providing these new members the same level of excellent service, an expanded suite of products and services, as well as all the benefits membership in a credit union brings to help their businesses and families thrive,” Don Clark, the credit union’s CEO, said in a statement.

Washington Business Bank has worked alongside small-business owners across Washington state since its founding in 2002, said Jon Jones, CEO of the bank.

“We know these owners will find the same level of partnership with the Sound Credit Union team for years to come,” he said. 

Washington Business Bank is the second bank Sound has bought. The Tacoma-based credit union purchased Bank of Washington in 2019, and acquired a branch of First Interstate Bank in 2021. 

Sound Credit Union earned $21.2 million in 2023, a 6% decrease compared with a year earlier, according to call report data from the National Credit Union Administration.

Net income for Washington Business Bank was nearly $1.6 million in 2023, 34% higher than year-end 2022, the bank said in a press release. 

Berkshire Bank is selling 10 of its upstate and eastern New York branches to three buyers, the Boston-based lender announced.

Eight of the branches will be acquired by Hudson Valley Credit Union. That would mark Hudson Valley’s second banking acquisition so far this year. The Poughkeepsie, New York-based credit union announced in January it would buy Catskill Hudson Bank in a deal worth roughly $28.6 million.

Glens Falls National Bank and Trust Co. is purchasing a Berkshire branch in Whitehall. Oswego, New York-based Pathfinder Bank is purchasing a branch in East Syracuse, Berkshire said.

Berkshire did not disclose financial terms of the deals but said the sales include roughly $485.5 million in deposits and $60.5 million of related residential mortgage and consumer loans.

All three deals are expected to be completed by the end of the third quarter of 2024, the bank said, and are set to reduce Berkshire’s overall footprint to 86 branches, from 96.

Berkshire CEO Nitin Mhatre said the sales are another step in the $12.4 billion-asset bank’s efforts to create efficiencies in its branch network so it can improve its long-term profitability. 

“The proposed sales will concentrate our overall geographic footprint and lower our expense run rate, while strengthening focus in our core New York markets,” Mhatre said. “The branch sales combined with a future securities sale will not materially increase borrowings and will be effectively neutral to full year 2024 earnings outlook.”

The sales will leave 16 Berkshire branches in upstate and eastern New York, the bank said.

The eight branches in Albany, Saratoga, Schenectady and Columbia counties that $7 billion-asset Hudson Valley will buy would expand the credit union’s reach to 30 branches throughout the Hudson Valley and Capital Region. That would not include the branches it stands to gain in the Catskill Hudson deal.

Hudson Valley CEO Jonathan Roberts said the credit union intends to keep all employees of the acquired Berkshire branches.

The purchases will include the deposits, fixed assets and certain residential and consumer loans at the affected branches, Hudson Valley said. 

Attorney Michael Bell of Honigman, who advised Hudson Valley on the Berkshire deal, said the branch-deal space is becoming markedly more active, and he expects that to hold true throughout 2024.

“Buyers are incentivized to gain scale and liquidity, and sellers are interested to get more efficient, to deliver earnings and to right size,” Bell said in an interview.

Moline, Illinois-based Empeople Credit Union will acquire Lomira, Wisconsin-based TSB Bank for an undisclosed sum, the institutions announced.

The deal, expected to be completed in the fourth quarter, will create a roughly $2.2 billion-asset institution, giving Empeople expanded business and commercial services and a deeper footprint in Wisconsin.

After the deal closes, TSB Bank will operate as “TSB Financial, a division of Empeople Credit Union,” said the bank’s CEO, Thomas O’Connor. “The communities we serve will continue to experience a customer-focused approach from familiar individuals in existing locations,” O’Connor said.

The deal marks Empeople’s first-ever bank acquisition.

Jeff Cardone, a partner at Luse Gorman, who served as legal counsel to Empeople Credit Union in the deal, said in an interview that, on a macro level, he expects credit union-bank transactions to continue at their current pace because of a convergence of business strategies of the institutions.  

“For credit unions, bank acquisitions expand their geographic footprint and lines of businesses and commercial lending infrastructure,” Cardone said. “For banks, a strategic partnership with a credit union provides economies of scale for their employees and customer base, while providing liquidity for their closely held shareholders.”

After the transaction closes, TSB Bank will liquidate and distribute its remaining assets to its stockholders. It counted $182 million in assets and $151 million in deposits as of Dec. 31, and has three locations and roughly 25 employees.

“TSB Bank is an extremely well-run institution with a very long history in the area,” Empeople Credit Union CEO Kurt Lewin said in the release.

TSB Bank opened in 1905 in Theresa, Wisconsin, as the Theresa State Bank.

“The expertise of the TSB Bank staff and management will allow us to expand opportunities for our members who own and operate small businesses,” Lewin said, noting that the credit union already has members at a nearby John Deere facility. 

Empeople, the sixth-largest credit union in Illinois by assets, was created in 2021 when the $1.3 billion-asset Deere Employees Credit Union in Moline merged with the $338 million-asset Infinity Federal Credit Union in Westbrook, Maine.

The Empeople deal would be the third credit union-bank tie-up this year to take root in the Midwest — typically fertile ground for such acquisitions. Michigan-based Advia Credit Union agreed in January to buy Illinois-based NorthSide Community Bank. Wabash, Indiana-based Beacon Credit Union, on the same day, announced it would acquire Mid-Southern Savings Bank of Salem, Indiana.

Empeople earned $7.1 million in 2023, a 35% decrease compared with a year earlier, according to call report data from the National Credit Union Administration. 

Net income for TSB Bank was $2.1 million in 2023, compared with $1.8 million the year before, according to S&P Global Market Intelligence.

Kalamazoo, Michigan-based Advia Credit Union agreed to buy $255 million-asset NorthSide Community Bank, the company announced.

The acquisition will expand Advia’s footprint to northeastern Illinois by adding branches in Gurnee, Mundelein, Niles and Riverwoods.

The transaction, expected to close in the third quarter, will boost Advia’s assets beyond $3 billion and its headcount to more than 550. The credit union will serve roughly 200,000 members across 32 branches in Michigan, Illinois and Wisconsin.

Financial terms of the deal were not disclosed.

“We are excited to welcome the customers of NorthSide Community Bank as members of Advia Credit Union,” Jeff Fielder, Advia’s CEO, said in a statement. “At Advia, our mission is to provide financial advantages to those we serve. NorthSide has a very talented team, and we are excited to have them join ours — growing stronger together.”

This is Advia's third bank acquisition. The credit union in 2016 and 2017 acquired two Wisconsin banks: $82 million-asset Mid America Bank in Janesville and $230 million-asset Peoples Bank in Elkhorn.

This is not the first time NorthSide has agreed to a deal with a credit union. Rantoul, Illinois-based Credit Union 1 agreed to acquire the community bank’s assets and liabilities in June 2022. The deal was expected to close during the fourth quarter of 2022 or the first quarter of 2023. The deal got a green light from the Federal Deposit Insurance Corp., but the agency’s website said the deal “will not consummate,” S&P Global reported in August 2023.

“We are very pleased with the transaction, and we believe NorthSide Community Bank’s customers, employees, communities and shareholders will all benefit,” NorthSide CEO Patti Clausen said in a statement. “Advia is well positioned to competitively meet the financial needs of both our commercial and consumer customers.”

The Midwest, for some time, has been a hot spot for bank acquisitions by credit unions.

“[C]ertain states in the Midwest (i.e. Illinois) have a large amount of community banks and will remain very active,” Michael Bell, chair of the financial institutions practice group at Honigman, told Banking Dive via email.

Wabash, Indiana-based Beacon Credit Union plans to acquire Mid-Southern Savings Bank of Salem, Indiana,the credit union said in a press release.

Beacon will pay roughly $45 million for the bank, although the final price will be adjusted based on the bank’s equity at deal closing.

The deal is expected to be completed in the third or fourth quarter of 2024.

Mid-Southern, a $266 million-asset institution, would be Beacon’s first community bank acquisition and continues the credit union’s strategic expansion into southern Indiana.

“This acquisition is a win-win for everyone involved as it provides Beacon’s competitive services and products to new communities,” said Beacon’s CEO, Dustin Cuttriss.

Upon completion of the transaction, Mid-Southern CEO Alexander Babey will join the $1.5 billion-asset Beacon in a transitional consulting role.

Beacon plans to keep open all three of Mid-Southern's branches and its three loan production offices after the deal closes.

The Beacon deal came one day after Advia Credit Union of Kalamazoo, Michigan, said it struck a deal to acquire $267 million-asset NorthSide Community Bank in Illinois.

“The activity levels I am experiencing are unprecedented,” said attorney Michael Bell of Honigman, who has advised many credit unions on bank buys. “There’s a lot happening. Barring an act of God or black swan event, I am certain that this year will break records.” 

Sixteen credit union-bank tie-ups were proposed in 2022.

Attorney Jeff Cardone of Luse Gorman, which served as legal adviser to Catskill Hudson Bank in its deal with Hudson Valley Credit Union and to Mid-Southern Bank in the Beacon deal, said an improved interest rate environment and increased tangible book values for banks will only lead to more deals.

“We are anticipating that the pace of deals involving credit unions buying banks will continue to accelerate in 2024 and beyond, particularly for selling banks that desire cash consideration,” Cardone said. 

Anchorage, Alaska-based Global Federal Credit Union agreed to acquire $1.5 billion-asset First Financial Northwest Bank in a $231.2 million all-cash transaction, the credit union announced.

Following the deal, which is expected to close in the fourth quarter, Renton-based First Financial Northwest Bank, and its holding company, Financial Northwest, will wind down and dissolve.

Based on First Financial Northwest’s outstanding shares as of Dec. 31, the company expects its shareholders to get $23.18 to $23.75 per share on liquidation, according to the press release.

The move will return Global Federal’s branch footprint to western Washington, where it began operations 40 years ago.

“We are enthusiastic about combining two financially sound institutions that share a strong commitment to service and community engagement,” Geoff Lundfelt, Global Federal Credit Union’s CEO, said in a statement. “First Financial Northwest Bank’s branch network has a technology-forward design, accelerating the transformation to an environment with a structure and atmosphere more suited to conducting business in the future.”

If the deal goes through, it would be the largest bank purchased by a credit union to date, according to American Banker.

“The projected future earnings from the acquisition of First Financial Northwest Bank’s franchise justify the pricing of the transaction and are expected to be accretive to Global from a financial perspective,” Lundfelt said.

First Financial is a century-old bank established in 1923 as the Renton Savings and Loan Association. Over the years, it has transformed into a full-service community bank with over 150 employees serving customers in the Puget Sound region and 15 banking offices.

“In today’s competitive environment, we believe this strategic transaction provides numerous benefits for our customers, our communities, and our employees. In addition, this transaction delivers substantial value to our shareholders who have supported us over the years,” Joseph W. Kiley III, CEO of First Financial Northwest Bank, said in a statement.

Michael Bell, chair of the financial institutions practice group at Honigman, told Banking Dive via email that 2024 is an “active year” for mergers and acquisitions. 

“These [deals] happen via a choice by buyers and sellers and only occur when both get a ‘win,’” Bell said. “There are no involuntary or hostile takeovers here, just two parties finding value for their stakeholders.”

Poughkeepsie, New York-based Hudson Valley Credit Union has agreed to buy Catskill Hudson Bank and its parent company Hudson Bancorp, the credit union announced.

Stockholders of the community bank will receive $40.50 in cash for each share of Catskill Hudson common stock held — making the deal value roughly $28.6 million, the statement said.

The transaction will boost HVCU’s assets to $7.4 billion and increase its footprint to 32 branches across the Hudson Valley and Capital Region while adding a commercial book of business. The merger is expected to close by the second half of 2024 after regulatory approvals, after which Catskill Hudson Bank will operate under the HVCU name and brand.  

“This is an important moment in our growth story. Welcoming the Catskill Hudson customers and employees to the credit union will create a stronger institution than either of us were individually,” HVCU CEO Jonathan Roberts said in a statement. “Together, we will advance our mission by serving members in the northern counties of our current field of membership, and expand our service to include Sullivan County to the west.”

The Monticello, New York-based community bank brings with it $593 million in assets and around 7,500 customers across 14 branches and corporate offices in Sullivan, Orange, Ulster, Saratoga and Albany counties.

The move will give the lender a strong foothold in the competitive market and expand HVCU’s services in Sullivan County, Roberts said in a note to members. The credit union also aims to retain all employees of the bank, he added.

“Catskill Hudson leadership recognized that a strong financial partner like HVCU can help to ensure future financial success for both their customers and employees,” Roberts said.

After the acquisition, Catskill Hudson CEO Mario L. Martinez will serve as a senior market president.

“It was extremely important for us to partner with an organization that shares similar values, and we found that in Hudson Valley Credit Union. I am confident that HVCU will bring many benefits to our employees and customers for years to come,” Martinez said in a statement. "With Hudson Valley Credit Union's deep breadth of financial products and services, our customers will have even more opportunities to thrive with a financial partner that puts their well-being at the forefront — just as we have done for the past 30 years."

Michael Bell, attorney at Honigman, said he sees the market heating up not only across the eastern U.S. but across the country.

“There is an exceptionally high level of activity right now,” Bell told Banking Dive in an email.

Daleville, Alabama-based All In Credit Union has agreed to buy five branches of 22nd State Bank in the state, the bank announced.

After the deal, two branches of 22nd State Bank will remain. The bank will relocate its charter to Mobile, Alabama, and operate as an independent community bank, CEO Steve Smith said in a statement.

Financial terms of the deal, expected to close by the third quarter, were not disclosed.

All In will acquire 22nd State Bank branches in Brewton, Clayton, Eufaula, Geneva and Louisville. 

The credit union will gain roughly $145 million in deposits from the transaction and $130 million in loans, the bank said, according to figures from Oct. 31.

“We are excited to acquire these five branch locations from 22nd State Bank,” All In CEO Bobby Michael said in a statement. “This move allows us to expand our presence in our home base of south Alabama. We look forward to welcoming those 22nd State Bank employees and customers associated with the Branches to the All In family.”

All In is not a newcomer in bank M&A. The credit union agreed to buy Dothan, Alabama-based SunSouth Bank in June 2023. That acquisition also aimed to expand All In’s footprint across southern Alabama.

Michael Bell, an attorney at Honigman, called the deal a natural and adjacent expansion for All In, given its geography.

“Branch deals are rare, but they happen,” Bell told Banking Dive via email. “This is a very compelling and easy ‘add-on.’” 

Smith said the transaction “will more closely align 22nd State Bank’s geographic footprint with our strategy to be a community bank serving Alabama’s Gulf Coast region.

Christopher Olsen, managing partner at Olsen Palmer, said he expects credit union-bank activity levels to increase this year.

“After a somewhat tepid year for community bank M&A in 2023, we are seeing momentum building for greater M&A activity in 2024 driven by a variety of factors, including a decline in interest rates and the corresponding relief in bond valuations, a recovery in bank stock valuations, and the pursuit (on the part of acquirers) or lack of (on the part of sellers) sufficient operating scale,” Olsen told Banking Dive in an email.