Michigan Credit Union Plans to Buy Michigan Bank
4Front Credit Union and Old Mission Bank ink an agreement that's expected to close late this year.
If approved by regulators and shareholders, Michigan’s 4Front Credit Union’s proposed acquisition of Old Mission Bank will increase the financial cooperative’s managed assets to more than $1.1 billion later this year.
The $976 million 4Front Credit Union headquartered in Traverse City and the $130 million OMB based in Sault Ste. Marie jointly announced Tuesday they have signed a definitive agreement for the credit union to buy the bank’s assets and assume its liabilities.
The agreement’s financial terms were not disclosed.
This is 4Front’s first bank buy deal and the industry’s first 2023 announced acquisition agreement.
Established in 2000, OMB’s 28 employees run two branches in Sault Ste. Marie and Pickford, and manage $118 million in deposits and $9.4 million in capital. OMB posted $380,000 in net income, according to the bank’s 2022 third quarter Call Report.
The proposed purchase would give the credit union a market foothold in Michigan’s upper peninsula.
If the transaction is completed by late 2023, the bank’s branches would operate as “Old Mission, a division of 4Front Credit Union,” and OMB’s employees would be retained, 4Front Credit Union President/CEO Andy Kempf said.
“We look forward to expanding our services in the Upper Peninsula to even more people through exceptional experiences, wherever they are on their financial journey,” Kempf said in a prepared statement.