Jeff Disterhoft
NORTH LIBERTY, Iowa—In a move that’s a first among credit union/bank buys, the $7.1-billion GreenState CU here has agreed to simultaneously purchase separate banks in states outside of Iowa.
GreenState announced it intends to purchase the $345-million Premier Bank in Omaha, Neb., and the $731-million Oxford Bank & Trust in Oak Brook, Ill.
The combined assets of both banks make the deal the second-largest CU/bank purchase to date, with Jacksonville, Fla.-based VyStar CU agreeing in April to buy the $1.5-billion Heritage Southeast Bank in Jonesboro, Ga.
GreenState reported the Premier deal is expected to close “later” in 2021, with the Oxford Bank buy slated to close in the final quarter of this year.
“GreenState has been serving Midwesterners for over 80 years,” said GreenState President and CEO Jeff Disterhoft. “Our mission to save members time and money has been very well received. Joining forces with Premier Bank will allow us to do wonderful things for the customers and communities they reside in.”
The CEO had similar remarks about the Oxford Bank purchase, saying the CU has a long history of serving the Midwest and that “Oxford Bank’s rich history of quality service and community giveback makes it a perfect match for GreenState. We can do great things together.”
Added Chris Maher, CEO and chairman of Premier, “This partnership will greatly expand the service potential of Premier Bank. Our customers will have a wider array of financial products and services as well as additional digital and branch convenience. Best of all, our customers will be working with the same familiar faces at the same office locations,” Maher stated.
Established in 2011, the two-branch Premier Bank is a locally owned, community bank serving the Omaha and surrounding areas as well as the Nebraska City community. GreenState said the bank offers a full line of products and services, including business banking, and has made the list of Top 100 Healthiest Banks in America for the past six years, ranking 51st among the 5,267 banks analyzed in 2019.
Michael Bell
Premier Bank reported income of more than $4 million in 2020 and $2-million in 2019. Oxford Bank reported income of $12.3 million in 2020 and $7.2 million in 2019.
“Oxford Bank has a long history of exceptional service and community giveback. When we set out to find a potential partner, we found that GreenState’s vision and values aligned perfectly with ours,” said George Colis, chairman of Oxford Bank. “Oxford Bank customers will work with the same familiar faces at the same locations, only now with a greatly expanded menu of products to meet their diverse financial needs. We couldn’t be more excited about the future for our customers and employees.”
The attorney who has pioneered credit union acquisitions of banks, Michael Bell, who is representing GreenState, said the decision represents solid strategy to expand GreenState’s markets and footprint.
“This is the first time a credit union is doing two bank buys at once,” said Bell, a partner and co-chair of the Financial Institutions Practice Group at Honigman, LLP.
Bell has been involved in more than 40 whole-bank agreements, plus additional bank branch purchases.
“It's just a beautiful example of some deliberate and impressive non-organic growth. I think there is a lot of bravery here, and a lot of strategy.”