Washington’s HAPO Community CU Plans to Purchase Community First Bank
If approved by regulators and shareholders, the acquisition is expected to be completed by the third quarter of 2025.
The $2.3 billion HAPO Community Credit Union in Richland, Wash., said Tuesday is it planning to acquire the $632 million Community First Bank in Kennewick, Wash., by the third quarter of next year, pending regulatory and shareholder approvals.
Financial terms of the definitive agreement were not disclosed.
Founded in 1997, Community First Bank (CFB) recorded $588 million in deposits, $360 million in net loans, and $41.8 million in equity, according to its Q2 FDIC filings. The bank posted a net income of $2.5 million at the end of Q2. CFB runs five locations.
If HAPO’s first bank purchase is approved by regulators and shareholders, the combined institution would manage approximately $2.9 billion in assets, $2.5 billion in deposits, $2.2 billion in loans and 25 branches, and would serve more than 220,000 members in Washington and Oregon, according to a prepared statement from the credit union and bank.
HFG Trust, a subsidiary of CFB, will be restructured as an independent entity. HAPO said it plans to pursue a strategic partnership with HFG Trust to give its members an option to utilize its wealth management and trust services.
“This acquisition will enhance HAPO’s capacity to support local economic growth and address the financial needs of residents and businesses more effectively,” HAPO President/CEO Scott Mitchell said in a prepared statement. “We are thrilled to welcome the talented team at Community First Bank and look forward to providing more services and solutions to our members.”
This is the 18th credit union-bank acquisition agreement that has been announced this year.
In 2023, there were 11 credit union-bank buy deals announced, but one agreement has not been finalized. In 2022, there were 16 credit union-bank agreements, but two deals were not finalized.
In addition, there is one proposed merger of the $147 million Arrha Credit Union into the $378 million Pittsfield Co-operative Bank. The merger application is under review by the NCUA.