Alabama ONE Credit Union Plans Second Bank Purchase
The industry’s 15th credit union-bank acquisition deal is expected to be completed during Q2 of 2023.
Alabama ONE Credit Union in Tuscaloosa said Monday it plans to purchase First Bank in Wadley, Ala.
If the acquisition deal is approved by regulators and shareholders, it is expected to make Alabama ONE the state’s ninth billion-dollar credit union in 2023.
The $956 million Alabama ONE and the $130 million First Bank did not disclose the financial terms of their agreement.
Established in 1907, First Bank’s 24 employees run five offices in Wadley, Roanoke, Rockford, Hollis and Goodwater, Ala.
The bank, which posted a net income of $1.1 million at the end of the third quarter, managed $124 million in deposits and $5.3 million in equity capital in Q3, according to its Call Report.
The proposed purchase of First Bank, if approved, will increase the credit union’s branch network from 18 to 23 statewide and expand Alabama ONE’s market into the eastern area of the Yellowhammer State.
“Over time, we’ve seen many banks move out of rural communities. Their strategic goals are different than ours,” Alabama ONE President/CEO William Wells said in a prepared statement. “We are acquiring an exceptional, seasoned team from First Bank who care deeply for its customers. Introducing these valued customers to our well-rounded suite of products and services designed for rural banking needs is very exciting to us.”
In addition to personal and business banking products and services, Alabama ONE will also offer the bank’s customers comprehensive insurance offerings, retirement/wealth advisory solutions and financial wellness resources.
The transaction is expected to close no later than during the second quarter of 2023, according to Alabama ONE.
This is the credit union’s second bank buy. In September 2021, it completed the purchase of the $82 million First Bank of Linden in Alabama.
This year’s 15th credit union bank purchase deal exceeded 13 agreements in 2021. Though 10 deals have been completed, two were called off, including what would have been the credit union industry’s largest bank acquisition of the $1.7 billion Heritage Southeast Bank in Jonesboro, Ga., by the $13.2 billion VyStar Credit Union in Jacksonville, Fla.
In addition, the legality of a third purchase agreement of the $837 million Financial Federal Bank in Memphis by the $1.2 billion Orion Federal Credit Union in Memphis has been challenged by the state’s regulator, which filed an appeal before a Tennessee court in Nashville to block the deal. The appeals court has not made a ruling as of Tuesday, according to public filings.