Iowa’s Largest Credit Union Plans to Buy Seven Bank Branches

By the fourth quarter of this year, the $5.3 billion GreenState Credit Union in North Liberty, Iowa said it expects to finalize the purchase of seven branches of the $959 million First American Bank in Fort Dodge.

Financial terms of the deal announced June 25 were not disclosed.

First American Bank currently operates 10 branches in the Hawkeye State and three branches in Florida. In May, the bank agreed to sell its Sunshine State branches to the $3.4 billion MIDFLORIDA Credit Union in Lakeland. The branches manage more than $123 million in deposits. And in March, First American also agreed to sell three branches in Waukee, Ames and Sioux City, to the $913 million Availa Bank (formerly CS Bank) in Carroll, Iowa. These branches manage nearly $140 million in deposits.

GreenState, formerly named the University of Iowa Community CU, will buy the bank’s two branches in Des Moines and three branches in Ankeny, Clive and Urbandale. These branches manage $353 million in deposits, according to the FDIC.

Iowa’s largest credit union also has agreed to buy First American’s two branches in Fort Dodge that manage more than $117 million in deposits.

The seven branches serve about 10,000 customers and manage approximately $200 million in loans, the credit union said.

Jeff Disterhoft, president/CEO of GreenState CU, said the branches will provide greater convenience for current members who live in these areas.

The acquisition also means the credit union will pick up the 84-year-old bank’s mortgage, commercial and trust businesses.

Once the deal is finalized, GreenState’s branch network will expand from 18 to 25, while its members will increase from 190,463 to more than 200,000.