STCU announces purchase and assumption agreement with Community Bank
SPOKANE, WA (August 13, 2024) — STCU (Spokane Teachers Credit Union), Community Bank, and Community Bancshares, Inc., the registered financial holding company of Community Bank, announce that they have entered into a purchase and assumption agreement for STCU to acquire and assume substantially all the assets and liabilities of Community Bank.
Community Bank has 10 branches in Wallowa, Union, Umatilla, and Baker counties in Oregon, and Walla Walla and Asotin Counties in Washington, and $550 million in total assets.
STCU is a community-focused credit union that was founded in 1934. It serves more than 280,000 members, with a network of 39 branch locations spread across Eastern Washington, Tri-Cities, the Columbia Basin, and North Idaho. Headquartered near Spokane in Liberty Lake, Washington, STCU has $5.8 billion in total assets. When the transaction closes, the combined institution will have approximately $6.4 billion in total assets, and STCU will have 49 branches in Eastern Washington, the Columbia Basin, Tri-Cities, North Idaho and Eastern Oregon.
In connection with the proposed transaction regulatory approval is required from the Oregon Division of Financial Regulation (ODFR), the Washington Department of Financial Institutions (WDFI), the National Credit Union Administration (NCUA) and the Federal Deposit Insurance Corporation (FDIC).
If approved by regulatory agencies, all Community Bank branches would transfer to STCU and become part of its branch network. STCU is committed to maintaining each of those branch locations, and to offering positions to all Community Bank employees.
“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,” said Tom Moran, Community Bank President and CEO. “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.”
In identifying STCU as a partner, Moran noted that both institutions “share common core values, with a strong focus on supporting the financial wellbeing of our customers, communities and employees.”
STCU President and 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, STCU has expanded its branch network in 12 small communities through similar transactions. The proposed transaction is 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 customers who become members of STCU will have full access to all of STCU’s expansive product and service offerings.
“We are committed to making this transaction as seamless as possible for Community Bank customers,” Eckhardt said. “We look forward to continuing Community Bank’s long tradition of supporting the communities it serves.”
Existing STCU members who live in northeastern Oregon and southeastern Washington will benefit from more convenient access to a local financial institution. While transactions are increasingly conducted via online banking and the STCU mobile app, “face-to-face interaction continues to be an important part of the STCU member experience,” Eckhardt said.
The pending transaction, which has unanimous support from both institutions’ boards of directors, is subject to regulatory and shareholder approval, and other customary closing conditions. The transaction is expected to close in early 2025. Following the completion of the transaction, Community Bank and Community Bancshares, Inc. will each dissolve, and all remaining assets will be distributed to the shareholders of Community Bancshares, Inc. In the meantime, Community Bank customers and STCU members should continue to conduct their business as usual.
Community Bancshares, Inc. and Community Bank were advised in the transaction by Performance Trust Capital Partners, LLC, as exclusive financial advisor, and Hunton Andrews Kurth, as legal counsel. STCU was advised by Commerce Street Capital, LLC, as exclusive financial advisor, and Farleigh Wada Witt, as legal counsel.
About STCU
Founded by educators in 1934, STCU is a not-for-profit financial cooperative with more than $5.7 billion in assets. It serves over 275,000 members at 38 branches in Eastern Washington, North Idaho, the Tri-Cities, and north-central Washington, and online at stcu.org.
About Community Bank
Community Bank is an Oregon-chartered commercial bank, based in Joseph, Oregon, with $550 million in total assets, and 10 branches serving the communities of Hermiston, Pendleton, La Grande, Elgin, Baker City, Enterprise, and Joseph in Oregon; and College Place, Walla Walla, and Clarkston in Washington.
A wholly-owned subsidiary of Community Bancshares, Inc., Community Bank has been providing banking services to local residents, businesses and industry, to ranchers and farmers, and to local governments since its founding in 1955. Learn more at communitybanknet.com
