Fifth Washington-based community bank of 2024 sells itself to a credit union
The $632 million-asset Community First Bank struck a deal with $2.4 billion-asset HAPO Community Credit Union.
HAPO Community Credit Union plans to acquire $632 million-asset Community First Bank in Kennewick, Washington.
Financial terms of the deal were not disclosed in a press release Tuesday.
The deal is the 18th announced this year in which a credit union is buying a bank. It is also the fifth of those transactions that involves a community bank based in Washington.
The $2.4 billion-asset HAPO said the deal will allow it to offer an enriched suite of financial products and services while reinforcing its dedication to the Tri Cities and surrounding areas.
“This acquisition will enhance HAPO’s capacity to support local economic growth and address the financial needs of residents and businesses more effectively. We are thrilled to welcome the talented team at Community First Bank and look forward to providing more services and solutions to our members,” said HAPO’s President and CEO, Scott Mitchell, in the release.
The transaction is expected to be completed in the mid third quarter of 2025.
The Richland, Washington-based HAPO will have approximately $2.9 billion in assets, $2.5 billion in deposits, $2.2 billion in loans, serve more than 220,000 members and will have 25 branches across Washington and Oregon after deal completion.
HFG Trust, a subsidiary of Community First Bank, will be restructured as an independent entity at the close of the merger.
In addition, HAPO Community Credit Union will enter a strategic partnership with HFG Trust to give its members an option to utilize the firm’s wealth management and trust services.
“This partnership allows us to elevate the services we provide while staying true to our core values of transparency, trust, and a client-first approach,” said Community First’s CEO Eric Pearson in the release.
Prior to 2024, the most credit union-buying-bank deals ever announced in a year was 16 in 2022.
Most recently, the $3.3 billion-asset OneAZ Credit Union in Phoenix said it will acquire $600 million-asset 1st Bank Yuma, the banking subsidiary of Western Arizona Bancorp Inc.
There were 11 credit union-buying-bank deals announced in 2023.
The largest of the five Washington-based banks to sell to a credit union this year was the $1.5 billion-asset First Financial Northwest Bank, which will be acquired by Alaska-based Global Federal Credit Union.
HAPO Community earned roughly $16.3 million in the first half of 2024, a 4% increase compared to a year earlier, according to call report data from the National Credit Union Administration.
It is the first bank acquisition for HAPO Community.
“We are thrilled to welcome the talented team at Community First Bank and look forward to providing more services and solutions to our members.”
– Scott Mitchell
President and CEO
HAPO Community Credit Union