Barksdale Federal Credit Union is buying a bank

Barksdale Federal Credit Union in Bossier City, Louisiana, has agreed to buy HomeBank of Arkansas for an undisclosed price. It is the fourth deal involving the sale of a bank to a credit union in the past 10 days.

“This acquisition will expand our footprint into Arkansas, and it will result in expanded product, service and technology offerings for HomeBank’s customers as well,” Patrick Gullatt, president and CEO of the $2 billion-asset Barksdale, said in a press release this week.

HomeBank in Greenbrier, Arkansas, is a $74 million-asset unit of Peoples Home Holding and has five branches.

If regulators approve the deal, Barksdale would have 30 branches in Arkansas, Louisiana and Texas.

Credit union-bank deals have been controversial. Banking industry trade groups object to them because they feel the federal tax exemption afforded to credit unions allows them more leverage during price negotiations. Others argue that credit unions make the bidding more competitive, add to sellers’ limited options in smaller markets, and tend to retain sellers' employees.

In 2021 there were 13 instances of a credit union purchasing a bank, a little shy of the record of 16 such deals in 2019.

The $4.8 billion-asset Summit Credit Union in Madison, Wisconsin, said Thursday it had agreed to buy Commerce State Bank in West Bend, Wisconsin. Additionally, two other credit union-bank deals were struck recently in Georgia: Robins Financial Credit Union in Warner Robins announced Monday it agreed to purchase Persons Banking Co. in Forsyth, and Georgia’s Own Credit Union in Atlanta said Feb.21 it will buy Vinings Bank in Smyrna, Georgia.

More credit union-bank deals are expected this year.