DES MOINES–GreenState Credit Union is purchasing seven branch locations of First American Bank in central Iowa. The deal includes $200 million in loans and $500-million in deposits, according to the credit union.
The same bank is selling four Florida legislations to MidFlorida Credit Union of Lakeland.
GreenState, formerly known as University of Iowa Credit Union until forced by the state legislature to change its name, said it expects to add approximately 10,000 new members as part of the deal, which still requires regulatory approval.
The $5.5-billion GreenState Credit Union has approximately 200,000 members.
Plans call for the acquisition to close in the fourth quarter, with the conversion completed around the same time.
‘Excited About Opportunity’
“We are excited about the opportunity to enhance the financial well-being of Iowans throughout the Des Moines and Fort Dodge communities, while at the same time providing greater convenience for our existing members living in those areas,” GreenState President and CEO Jeff Disterhoft said in a statement.
As CUToday.info has reported, banking groups have begun attacking CU purchases of banks, sending letters to Congress that, among several complaints, list loss of tax revenue from the deals. The ICBA has also launched a grassroots campaign to lobby Congress about CU acquisitions of banks.
“The GreenState First American agreement is simply a continued example of the free market, and a win for the seller and the buyer. Both industries are stronger when they have the freedom to choose a partner,” said Michael Bell, attorney and counselor with Royal Oak, Mich.-based Howard & Howard, who is representing GreenState. Bell has pioneered these transactions and has been involved in a great majority of CU/bank deals.
Fort Dodge-based First American Bank was founded in 1934.