First York Ban Corp in York, Neb., has agreed to acquire Glenvil Cooperative Credit Union, in a rare acquisition of a credit union by a bank.
The deal first requires approval from the Nebraska Department of Banking and Finance, said Kelly Holthus, president and chief executive of the $1.2 billion-asset First York, the holding company for Cornerstone Bank. First York expects to hear from the state on Dec. 6. The acquisition would then be submitted for approval from the Federal Deposit Insurance Corp., the Federal Reserve Board and the National Credit Union Administration.
Deals between credit unions and banks are rare, though they have been on the rise of late as smaller institutions seek more scale to better compete with larger banks. In one recent deal, Landmark Credit Union in New Berlin, Wis., reached an agreement to buy Hartford Savings Bank.
The $3 million-asset Glenvil approached First York about acquiring it because it was having problems hiring management, Holthus said.
First York has been active acquirer, purchasing four Nebraska community banks since January 2008.