It is not just whole banks that are being acquired by credit unions this year  – a number of branch deals have been announced too.

The latest: Rainbow City, Alabama-based Family Savings Credit Union said it will buy two branches from Huntsville-based Merit Bank.

Financial terms of the deal, which is expected to be completed in the first half of 2025, were not disclosed.

Under the terms of the agreement, the $1 billion-asset Family Savings will acquire the physical locations and most of the deposits and loans associated with the branches in Valley Head and Ider.

Those branches today hold approximately $27 million in deposits and $4 million in loans.

The $400 million-asset Merit will continue to operate through its headquarters location in Huntsville.

“We have growth plans for Dekalb County and this allows our expansion to be immediate, and the branches tie in well with our existing franchise in northeast Alabama and northwest Georgia,” said Danny Varnon, president and CEO of Family Savings CU.

In addition to the 18 deals announced this year in which a credit union is buying a bank, a handful of branch deals have been disclosed.

One of those involved other Alabama-based institutions.

In January, Daleville, Alabama-based All In Credit Union said it agreed to buy five branches of 22nd State Bank.

Will Heaps, President and CEO of Merit Bank, said its deal with Family Savings will allow the bank to better focus on its core market of Huntsville.

The transaction will also have a favorable impact on earnings, bank capital and overall efficiency of the bank, according to Heaps.

“And it ensures our customers in Dekalb County will continue to receive the same exemplary service they are accustomed to,” he said.

Family Savings Credit Union earned roughly $4.2 million in the first half of 2024, a 20% decrease compared to a year earlier, according to call report data from the National Credit Union Administration.

“The customer base of DeKalb County aligns very well with Family Savings Credit Union, which should provide for a positive and beneficial transition for both legacy customers and current employees.”

 – Will Heaps
President and CEO
Merit Bank