Proposed whole-bank acquisitions by credit unions reached a new peak in 2024, with 22 such deals being announced, surpassing the previous record of 16 deals set in 2022.
Livonia, Michigan-based Zeal Credit Union agreed to buy in-state Ironwood-based Gogebic Range Bank in an all-cash transaction, the companies announced Monday.
The move comes roughly a week and a half after Littleton, Massachusetts-based Hanscom Federal Credit Union telegraphed its intention to buy Chestertown, Maryland-based The Peoples Bank.
Not every potential deal closes, though. Atlanta Postal Credit Union and Affinity Bank said Monday they have called off the purchase agreement they struck in May.
The Michigan deal, expected to close by the third quarter of 2025, would boost Zeal’s assets to $975 million and expand its footprint in the state’s Upper Peninsula and northeastern Wisconsin with four added branches, according to a press release. Zeal now counts $839 million in assets and 12 branches across the Detroit metro area.
“We are excited for the opportunity to partner with Gogebic Range Bank and to improve access to our member benefits in the Upper Peninsula of Michigan and other contiguous market areas,” Zeal CEO Julie Kreinbring said in a statement. “Gogebic is a well-managed bank, and we look forward to welcoming their customers and employees into our family.”
Zeal expects to retain all of Gogebic’s employees and branches, it said.
After the deal is complete, Gogebic Range Bank and its parent, West End Financial Corp., will liquidate and distribute their remaining assets to their stockholders, the companies said.
“After carefully considering what is best for our employees, customers, shareholders, and the communities we serve, we believe our decision to partner with Zeal is the best path forward for our organization,” Gogebic CEO Neil Beckman said in a statement.
Hanscom heads to Maryland
The Hanscom deal, meanwhile, will help that credit union enter Maryland and expand its business offerings through The Peoples Bank's subsidiary, Fleetwood Insurance Group, the institutions said.
Following the deal's completion, Peoples will liquidate its remaining assets and liabilities and distribute remaining cash to its shareholders. Branches will be managed regionally and continue to operate under the same name and brand, the companies said.
The deal, expected to close in the second half of 2025, will boost Hanscom’s total assets past the $2 billion threshold and push its footprint to 23 branches from 16.
“We are proud to honor Peoples Bank's legacy and look forward to welcoming its talented team and nearly 20,000 customers to Hanscom,” the credit union’s CEO, Peter Rice, said in a statement. “Together, we will bring expanded financial opportunities to a region rich with potential.”
The acquisition will strengthen Hanscom’s investment in Kent, Queen Anne's and Talbot counties while expanding its ability to serve a customer base close to the Washington metro area, Rice said.
“Hanscom is the ideal partner to carry forward our 114-year legacy,” Corey Duncan, chairman of the boards of directors of Peoples and its parent company, said in a statement. “This combination ensures our customers and business partners gain access to a broader range of resources and innovative solutions, like Hanscom's WealthTrek program, which we expect will redefine banking in our region.”
Michael Bell, a partner at law firm Honigman, said he expects credit union acquisitions of banks to continue apace in 2025.
“Natural forces of the free market drove these deals,” Bell told Banking Dive via email. “Sellers wanted to sell and buyers wanted to buy. It’s the purest form of the market working. … We have never been busier and I expect announcements to start this month.”
Georgia deal crumbles
At least one of 2024’s record whole-bank deals will not cross the finish line, however.
Atlanta Postal Credit Union and Affinity Bank’s boards terminated their proposed deal, effective immediately, after discussions APCU held with regulatory agencies, the institutions said. APCU told Affinity that it would withdraw its application with the Georgia Department of Banking and Finance.
The deal was expected to close in the fourth quarter of 2024 or the first quarter of 2025.
Bank-credit union deals have long irked community banking trade groups that argue credit unions can offer a higher purchase price for banks because they aren’t required to pay taxes.
A second Trump administration, beginning this month, has spurred speculation of an uptick in mergers and acquisitions amid expectations of easing regulation.
Bell, however, said “politics of the day are not a material factor” in the proposal of combinations. The new administration, though, should help, not hurt, the deal environment by streamlining the regulatory process, Bell said.
