MAX to buy Alabama community bank.
The Montgomery credit union would add eight branches and bring its assets to about $2.6 billion, marking the third announced credit union-bank acquisition involving an Alabama institution this year.
MAX Credit Union has agreed to acquire First Financial Bank, a $248 million-asset institution based in Bessemer, Alabama, in an all-cash transaction that would expand the Montgomery credit union’s branch network and deepen its presence in the state.
Under the agreement, MAX will acquire substantially all of First Financial’s assets and assume substantially all of its liabilities. The transaction is expected to close and be integrated over the course of 2027, pending approval from FirstFed Bancorp shareholders, regulatory approvals and other customary closing conditions.
The acquisition would bring MAX to approximately $2.6 billion in assets and add First Financial’s eight branches to its existing network of 16 full-service locations. First Financial customers would gain access to MAX’s mortgage, wealth management, insurance and business lending services.
MAX has 134,000 members and reported $27.2 million in earnings during the first three quarters of 2026, up from $22.3 million in the same period a year earlier, the NCUA reported. First Financial earned $1.3 million in the first half of 2026, roughly unchanged from the year-ago period, according to FDIC data.
The deal is the ninth announced acquisition of a bank by a credit union this year, according to data compiled by Tyfone. Three of those transactions involve Alabama banks, making the state a notable center of this year’s activity.
The other two Alabama deals involve Alabama ONE Credit Union’s agreement to acquire substantially all of the assets and liabilities of Peoples Independent Bank and Gulf Winds Credit Union’s planned acquisition of the $99 million-asset Peoples Exchange Bank in Monroeville.
Nationally, credit union-bank acquisitions have slowed from recent peaks. Sixteen deals were announced in 2025, compared with a record 22 in 2024, according to S&P Global Market Intelligence. The latest announced transaction before the MAX deal involved DFCU Financial Credit Union, an $8 billion institution based in Dearborn, Mich., which plans to acquire Gulfside Bank in Sarasota, Fla.
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The transactions have drawn criticism from community bankers, who argue that credit unions’ tax advantages give them an edge when bidding for banks.
“It’s extremely disappointing to see another Alabama Chartered bank be sucked up by a taxpayer assisted credit union,” Brad Bolton, president and chief executive of Community Spirit Bank in Red Bay, Ala., told Tyfone. Bolton, a former chairman of the Independent Community Bankers of America, questioned whether a community bank might have been outbid because of the tax treatment afforded to credit unions.
Bolton also warned that the acquisitions could eventually reduce the number of community banks in Alabama and affect small-business lending and mortgage access.
The ICBA has made similar arguments nationally. After the announcement of DFCU Financial’s planned acquisition of Gulfside Bank, ICBA President and Chief Executive Rebeca Romero Rainey said the deals harm small businesses and reduce lending capacity in local communities. She called on policymakers to revisit the tax and regulatory exemptions that, in her view, help fuel credit union acquisitions.
For MAX, the agreement would add eight locations and bring a larger range of financial services to customers of a longtime Alabama bank. The deal remains subject to shareholder and regulatory approval, with closing and integration expected in 2027.
“One has to ponder if another community bank was interested in this deal but was outbid because of the tax structure afforded by the credit union.”
Brad Bolton
President & CEO
Community Spirit Bank
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.
