Late Friday evening, the Iowa Division of Banking and the First American Bank announced an agreement in which the banking superintendent will approve the bank's application that includes the sale of its seven branches to the $5.7 billion GreenState Credit Union in North Liberty.

"Because of the unique circumstances surrounding this transaction and because prolonging the dispute between the superintendent and First American will only prolong the pain and confusion of the impacted customers (members), the superintendent agrees to approve First American's application," the five-page settlement reads. "The superintendent's approval of the application is solely for the purpose of settling this dispute, and the superintendent does not admit that an Iowa state-chartered bank may sell substantially all of its assets and liabilities to a credit union under Iowa code. Rather, the superintendent reiterates his conclusion that such a transaction is not authorized and that IDOB will quickly deny any future application based on a similarly structured transaction. And … the superintendent retains the right to make such a conclusion before the transaction is closed."