HAPO Community Credit Union, Washington-based financial cooperative, has agreed to acquire Community First Bank, a provider of financial services in in Tri Cities region in the US.
The financial terms of the deal were not disclosed.
Structured as a purchase and assumption deal, the transaction will see HAPO Community Credit Union acquire all the assets and liabilities of Community First Bank.
The proposed acquisition is in line with HAPO Community Credit Union’s strategy to expand its range of financial products and personalised services. Despite the expansion, the credit union said that it will be able to retain its core values of member-centricity and community commitment.
Approved by the boards of directors of both parties, the deal will bring together the strengths of both financial institutions. This will enable HAPO Community Credit Union to offer a broader portfolio of services while continuing to serve the Tri-Cities region and surrounding areas.
Upon completion, Community First Bank will distribute its remaining assets to shareholders.
The enlarged entity is expected to have around $2.9bn in assets, $2.5bn in deposits, and $2.2bn in loans. It will serve over 220,000 members through 25 branches across Washington and Oregon in the US.
Community First Bank’s subsidiary HFG Trust will become an independent entity following the acquisition. It will continue to offer financial guidance.
Besides, a strategic partnership will also be established between HAPO Community Credit Union and HFG Trust. This will allow the former’s members to access wealth management and trust services provided by HFG Trust.
Community First Bank CEO Eric Pearson said: “This partnership allows us to elevate the services we provide while staying true to our core values of transparency, trust, and a client-first approach.
“Together, we are creating a stronger future, delivering unmatched financial solutions, more opportunities for our employees, and deepening our commitment to the communities we serve.”
Both HAPO Community Credit Union and Community First Bank aim to ensure uninterrupted service for customers during the transition.
Once approved, all Community First Bank branches will be integrated into HAPO Community Credit Union’s network, further strengthening its presence in the region.
HAPO Community Credit Union president and CEO Scott Mitchell said: “This acquisition will enhance HAPO’s capacity to support local economic growth and address the financial needs of residents and businesses more effectively.”
Subject to regulatory approval, approval from Community First Bank shareholders, and other customary conditions, the transaction is anticipated to be completed in mid-Q3 2025.
For the transaction, HAPO Community Credit Union was advised by ALM First Analytics as financial adviser and Honigman as legal counsel.
