TDECU Signs Definitive Agreement to Acquire Sabine State Bank and Trust
If approved by regulators, the second largest credit union bank buy deal this year is expected to close in early 2025.
The $4.6 billion TDECU in Lake Jackson, Texas said it plans to acquire the $1.3 billion Sabine State Bank and Trust in Many, La., the second largest credit union bank buy deal this year.
Financial terms of the definitive agreement were not disclosed. It is expected to be finalized by early 2025 pending regulatory approvals and other closing conditions, the financial institutions said in a prepared statement released Tuesday morning.
“TDECU is on a growth journey to expand across the state of Texas and beyond,” TDECU President/CEO Isaac Johnson said. “This acquisition extends our reach to more communities, diversifies our commercial portfolio and makes our balance sheet even stronger. If our balance sheet is stronger that will enable TDECU to continue to deliver and do more for our existing members. Together, we will strengthen ties with our membership, partners and local communities.”
Founded in 1902, Sabine State Bank and Trust’s 360 employees operate 46 locations in western Louisiana and five locations in eastern Texas, serving approximately 56,000 customers. Chartered in 1954, TDECU’s 900 employees operate 39 service locations and 35 member centers in Houston and throughout its metro area, Fort Worth and Dallas, serving more than 385,000 members.
The bank, which specializes in commercial loans with industry concentration in oil and gas, agriculture, forestry and timber, also manages long-standing depository relationships with municipalities, school districts, fire districts and law enforcement agencies.
Sabine State Bank and Trust posted $1 billion in loans, more than $1.1 billion in deposits and $121 million in capital in the first quarter of this year, according to its Uniform Bank Performance Report filed with the FDIC.
“We are excited to become a part of the TDECU family and we share their commitment to strengthening our communities and empowering our customers to build better financial futures,” Sabine State Bank and Trust President/CEO of Lee H. McCann said. “Our customers can be rest assured that they will continue to experience the best-in-class service they count on from us. Best of all, that service will be enhanced with an even wider array of financial products to help them better secure their futures.”
If the deal is approved, the combined institution will manage approximately $6 billion in assets and serve 471,000 members.
This year’s largest credit union-bank buy deal was announced in January when the $11.8 billion Global Federal Credit Union in Anchorage, Alaska said it plans to acquire the $1.5 billion First Financial Northwest Bank in Renton, Wash., for $231.2 million in cash.