Iowa bank announces second asset sale to a credit union
First American Bank in Fort Dodge, Iowa, has worked out another deal with a credit union.
The $959 million-asset bank agreed on Tuesday to sell seven branches and related assets in Iowa to GreenState Credit Union in North Liberty, Iowa. The $5.4 billion-asset credit union said the branches are located around Fort Dodge and Des Moines.
The sale is expected to close in the fourth quarter.
The agreement comes less than two months after First American announced plans to sell Community Bank & Trust of Florida to MidFlorida Credit Union in a deal that should close in November.
“We are excited about the opportunity to enhance the financial well-being of Iowans ... while at the same time providing greater convenience for our existing members living in those areas,” Jeff Disterhoft, GreenState's president and CEO, said in a press release.
GreenState said it is buying about $200 million in loans and $500 million in deposits. The credit union, which will add 10,000 members, did not disclose the price it will pay.
“We are confident that GreenState’s consumer and mortgage business will blend well with our commercial banking and trust services,” John Fisher, First American's president and CEO, said in the release. “The combination ... will be of great benefit to consumers, small businesses and our respective communities.”
GreenState is the new name for Iowa Community Credit Union, which was forced to rebrand after a rider in the state's 2018 budget barred Iowa credit unions from using the names of state universities in their own name. The name change happened in early May.