Avadian Credit Union in Birmingham, Ala., has agreed to buy American Bank of Huntsville in Alabama.
The $607 million-asset credit union did not disclose the financial terms of the agreement. The boards of the credit union and bank have approved the transaction, and the companies expect it to close by Dec. 31.
The $123 million-asset American Bank posted a second-quarter loss of $470,000, according to its Federal Deposit Insurance Corp. call report. That followed a first-quarter loss of $295,000. American Bank recorded an efficiency ratio of 120.26% in the first quarter.
American Bank, a thrift established in 1920, operates one branch, in Huntsville.
Avadian is a state-chartered credit union founded in 1934 to serve telephone company employees in Alabama.
Feldman Financial was financial adviser to Avadian and Howard & Howard was legal counsel. FIG Partners was financial adviser to American Bank and SmithAmundsen was legal counsel.