Washington’s STCU Plans Acquisition of Community Bank in Oregon
If approved by regulators and shareholders, the deal is expected to close in 2025.
The $5.8 billion Spokane Teachers Credit Union (STCU) in Liberty Lake, Wash., said Tuesday it expects to close a deal to acquire the $548 million Community Bank in Joseph, Ore., by the early part of 2025, pending regulatory and shareholder approvals.
STCU President/CEO Ezra Eckhardt said the proposed transaction fits with the credit union’s commitment to rural communities across its footprint, including many that would otherwise lose access to a local financial institution.
Since 2020, the credit union has expanded its branch network in 12 small communities through similar transactions. The proposed purchase is also part of STCU’s strategy to expand its footprint, diversify its assets, and add additional talent and expertise in each of the communities it serves.
Community Bank’s 81 employees operate 10 branches and serve 17,800 customers. The bank manages $508 million in deposits, $135 million in loans and $22.2 million in capital. At the end of the second quarter, Community Bank posted $1.9 million in net income, according to its FDIC filings.
Community Bank’s branches are in Wallowa, Union, Umatilla and Baker counties in Oregon, and Walla Walla and Asotin counties in Washington.
“Since our founding in 1955, Community Bank has been proud to support the communities of our region, and the many neighbors who are our customers,” Community Bank President/CEO Tom Moran said. “As the banking and business environment of our region grows increasingly competitive, this transaction with STCU will ensure expanded product offerings, more locations and a continued high level of services.”
STCU’s 943 employees operate 39 branches and serve more than 281,000 members.
If the acquisition is approved by regulators and shareholders, STCU will manage assets of approximately $6.4 billion, operate 49 branches, and serve nearly 300,000 members throughout Eastern Washington, the Columbia Basin, Tri-Cities, North Idaho and Eastern Oregon.
Although STCU purchased four Banner Bank branches in 2022 and four Umpqua Bank branches in 2020, this is the credit union’s first bank acquisition agreement.