Gesa expands into Oregon with community bank deal.
The planned acquisition of Willamette Valley Bank would give the Washington credit union its first Oregon retail branches as credit union-bank mergers continue despite a slower pace this year.
Gesa Credit Union is expanding into Oregon through the planned acquisition of Willamette Valley Bank, a move that would give one of Washington state’s largest credit unions its first retail presence across the state line while extending a trend that has reshaped community banking in recent years.
The Richland, Wash.-based credit union and Salem-based Willamette Valley Bank announced they have signed a definitive agreement under which Gesa will acquire substantially all of the bank’s assets and assume substantially all of its liabilities in an all-cash transaction. The deal also includes Oregon Bancorp Inc., the bank’s publicly traded parent company.
Financial terms of the acquisition were not disclosed, although Oregon Bancorp shareholders are expected to receive between $43 and $45 per share after the transaction closes and the holding company is dissolved.
The agreement has been approved unanimously by the boards of Gesa, Willamette Valley Bank and Oregon Bancorp. It remains subject to regulatory approval and approval by Oregon Bancorp shareholders. The companies expect the transaction to close during the first half of 2027.
For Gesa, which has approximately $6.8 billion in assets and more than 322,000 members, the acquisition marks another step in a strategy of expanding through bank acquisitions. In 2024, the credit union announced plans to acquire Security State Bank, based in Centralia, Wash.
“This partnership brings together two organizations that share a deep commitment to serving customers, supporting local communities, and building long-term relationships,” Ryan Dempster, president and chief executive officer of Willamette Valley Bank, said in announcing the agreement.
Founded in 2000, Willamette Valley Bank has grown into a regional community bank with approximately $465 million in assets and $358 million in deposits. The bank operates four branches in Linn and Marion counties and a loan office in Washington County, serving the Portland metropolitan area.
Under the agreement, those locations will remain open after the transaction closes, and employees will continue serving customers from the same offices. Customers will become member-owners of Gesa, reflecting the cooperative ownership structure unique to credit unions.
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Don Miller, Gesa’s president and chief executive officer, said the organizations share a common philosophy centered on local communities.
“In Willamette Valley Bank, we found people who believe what we believe, that a financial institution exists to support the people and communities it serves,” Miller said.
The credit union said it invested $5.8 million in community initiatives across the Pacific Northwest last year, while providing free financial education to more than 14,000 people and logging more than 9,400 volunteer hours through employee service.
Dempster said joining Gesa would allow the bank to expand the products and resources available to customers while maintaining its community-focused approach.
“We are proud of what our team has built and excited about the future we can create together,” he said.
Until the acquisition closes, both institutions said they will continue operating independently. Customers and members are not expected to take any action, and any future account changes would be communicated in advance.
The transaction comes during an unusually quiet year for credit union acquisitions of banks. Only four such deals were announced during the first six months of 2026, a sharp slowdown from the previous two years.
The announced transactions this year include Zeal Credit Union‘s planned acquisition of Michigan-based Miners State Bank, Alabama ONE’s purchase of Peoples Independent Bank, Landmark Credit Union’s agreement to acquire American National Bank–Fox Cities in Wisconsin, and Interra Credit Union’s planned acquisition of The Hicksville Bank in Ohio.
The slower pace follows a period of heightened activity. According to S&P Global Market Intelligence, 16 credit union-bank acquisitions were announced in 2025, following a record 22 transactions in 2024.
Despite the recent slowdown, advisers who specialize in financial institution mergers have said they expect acquisition activity to remain strong as more community banks seek strategic partners amid rising technology costs, increasing regulatory demands and ongoing competitive pressures.
For Gesa, the Oregon acquisition extends that broader strategy while opening a new geographic market. For Willamette Valley Bank, the agreement offers access to the broader lending capabilities, products and branch network of a larger institution while preserving local operations.
Gesa earned $14.6 million in the first quarter of 2026.
If regulators and shareholders approve the transaction as expected next year, the name on the branches will change, but the institutions say the employees serving customers in Oregon communities will remain the same. The result would be a combination of a long-established Washington credit union and an Oregon community bank that both say their competitive advantage lies in local relationships rather than size alone.
“As a cooperative, Gesa measures itself by what it gives back, and we look forward to bringing that commitment to the Willamette Valley, alongside the local team that has served these communities for a generation.”
– Don Miller
President & CEO
Gesa Credit Union
Ken McCarthy is manager of marketing communications at Tyfone, where he monitors the credit union industry and contributes to conversations shaping its future. He previously covered credit unions and community banking for American Banker and S&P Global Market Intelligence. He holds a journalism degree from Point Park University and has more than 15 years of experience covering financial services. He is also the author of three literary fiction novels.
