The $189 million Trona Valley Community Federal Credit Union in Green River, Wyo., inked an asset purchase and liability assumption agreement last week to buy the $36 million State Bank also based in Green River.
Financial terms of the deal were not disclosed.
Established in 1997, State Bank manages $31 million in deposits, 11 employees and two branches.
At the end of last year, State Bank posted a net income of $108,000, a pre-tax ROA of 0.29% and an ROE of 2.16%, according to the FDIC.
The board of directors of both institutions approved the transaction, which is subject to customary conditions, including approvals of the NCUA, bank regulatory agencies and the shareholders of State Bank.
A joint prepared statement released by both financial institutions did not say when they expect to secure the regulatory and shareholders’ approvals.
“We are excited about combining these two financial institutions covering the Southwest Wyoming area,” Jeremy Gibson, president/CEO of Trona Valley Community FCU, said in a prepared statement.
The credit union manages four branches and serves 17,471 members.
This is the second credit union acquisition of a bank in 2017.
The $52 million Citizens State Bank of Ontonagon, Mich. said last week that it intends to sell its assets and liabilities to the $734 million Honor Credit Union of Berrien Springs, Mich.
Established in 1910, Citizens State manages $46 million in deposits, 13 employees and three branches. At the end of last year, Citizens State Bank posted a net income of $204,000, a pre-tax ROA of 0.44% and an ROE of 2.96%, according to the FDIC.
In March, the $625 million Family Security Credit Union in Decatur, Ala., announced it finalized the acquisition of the $20 million Bank of Pine Hill in Pine Hill, Ala., according to the Birmingham Business Journal. This deal was announced in August 2016.
