It had been nearly two months since a U.S. credit union announced a bank purchase.

But that streak ended Tuesday.

The $1.3 billion-asset San Francisco Federal Credit Union said it plans to acquire the $287 million-asset Summit Bank across the bay in Oakland.

Financial details of the all-cash transaction – including the purchase price – were not disclosed in a press release. The acquisition is expected to be completed in the first quarter of 2026.

Part of the impetus for the acquisition was Summit Bank’s portfolio of real estate and commercial loans. At the end of 2024, the bank had more than $167 million in real estate and $38 million in commercial loans. Combined, those lending lines saw an 11% year-over-year increase.

The bank operates three branches – in Oakland, Emeryville, and Walnut Creek – serving small to medium-sized businesses and individuals.

“San Francisco Federal Credit Union wants to come into Alameda and Contra Cost counties and expand the products and services available to our borrowers and depositors,” said Steve Nelson, President of Summit Bank, in the press release.

Shirley Nelson and a group of investors founded the bank in 1982. It is the oldest woman-founded bank in California.

Shirley serves as the bank’s Chairman and CEO.

“While it has been difficult to let go of something that I started over 43 years ago, I still plan to be involved supporting Summit Foundation,” she said.

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The deal is the ninth announced this year in which a credit union is buying a bank.

Most recently, Avenir Financial Federal Credit Union in Arizona said in late May that it plans to buy in-state peer Mission Bank.

There were 22 CU-bank deals announced last year – the most ever. Prior to 2024, the most credit union-buying-bank deals struck in a year was 16 in 2022.

However, this year’s pace is slightly lagging 2024 as 12 credit union-bank deals had been announced by this point last year.

The only other CU-bank deal ever struck in California was the $1.5 billion-asset Frontwave Credit Union’s acquisition of  Community Valley Bank in El Centro, which was announced in January.

Luse Gorman attorney Jeff Cardone told Tyfone the deal is the first bank purchase by San Francisco FCU. Its CEO, Ray Shams, took the helm in November.

Luse Gorman was the legal counsel for the credit union.

But the Independent Community Bankers of America has repeatedly called on lawmakers to address credit unions’ “exploitation of tax and regulatory advantages.” Additionally, a policy resolution that ICBA introduced earlier this year asks policymakers to end the federal tax exemption for credit unions with $1 billion or more in assets.

“Policymakers must address this taxpayer-subsidized consolidation brought about by growth-obsessed credit unions taking advantage of loopholes and act to preserve market choice for consumers and small businesses,” said ICBA President and CEO Rebeca Romero Rainey.

San Francisco FCU has more than 51,000 members and earned nearly $3 million in the first quarter, a 58% decrease compared to a year earlier, according to call report data from the National Credit Union Administration.

For Summit Bank, net income was $906,000 in the first quarter compared to $1.3 million in the year-ago quarter, according to the FDIC.

The bank’s assets have steadily declined in the past three years, peaking at $384 million in 2022.

“We are confident that in passing the torch to San Francisco Federal Credit Union, our values of professionalism, accountability, and giving back to the community will be continued.”

 – Steve Nelson
President
Summit Bank