SPOKANE, Wash. – In an unusual move, Wheatland Bank here will sell one of its branches along with the customer deposits from that branch to Spokane Teachers Credit Union, but not the loans. The loans held by Wheatland's branch in Cheney here will remain with the bank, but the $6 million in deposits will convert over to STCU and pending regulatory approval, those funds will convert from FDIC Insurance to the credit union's equivalent NCUSIF Insurance. Because the bank loans at the branch are agricultural-based and that's "not an area of expertise" for STCU, those loans will remain at Wheatland, said Susan Cerutti-Jensen, STCU spokesperson. "While bank-to-bank branch sales are quite common, the assumption of bank deposit accounts by a credit union is, to our knowledge, the first of its kind in the history of financial institutions," said Steve Dahlstrom, STCU president/CEO. Dahlstrom said the purchase of the Cheney branch is a "great opportunity for STCU" because it allows the credit union to "better serve the already existing 1,051 members located in that community," not including the members who live in Spokane and work in Cheney or the surrounding areas such as Four Lakes and Medical Lake. STCU has more than 70,000 members, $611 million in assets and $524 million in deposits. Wheatland Bank has $141 million in assets and $111 million in deposits. There are 700 customers at the Cheney Branch and all existing account terms of the depositors will be honored by STCU, Dahlstrom said. The four Wheatland employees at the Cheney branch will remain there, according to both financial institutions. The terms of the transaction have not been disclosed, but according to Susan Pittman Horton, Wheatland Bank's president/CEO and chairman, the strategic decision will enhance the profitability of Wheatland Bank and is consistent with our long term plans and positioning. Brian Witt, the attorney representing STCU, said the credit union's formal approval request has been submitted to NCUA Region VI and NCUA General Counsel's offices and both are currently reviewing the request. "The transaction is subject to getting the NCUA Board's approval," Witt said. The two institutions say that STCU approached Wheatland about the prospect of buying its branch. The Cheney branch would be STCU's eighth. Wheatland has eight other branches. The transaction is pending final regulatory approval, scheduled to be complete by Dec. 20. Terms of the transaction won't be released until then, said Cerutti-Jensen. Chartered in 1934, STCU expanded its membership in 1964 to include employees at area colleges and high schools countywide. Ten years later, membership grew to include school employees of seven Eastern Washington counties and alumni of area colleges. [email protected]