GreenState Credit Union plans to buy two banks

GreenState Credit Union in North Liberty, Iowa, has agreed to buy banks in Illinois and Nebraska. 

The $7.5 billion-asset credit union said in a press release Tuesday that it has purchase-and-assumption agreements to acquire the $730.8 million-asset Oxford Bank & Trust in Oak Brook, Ill., and the $344.6 million-asset Premier Bank in Omaha, Neb. 

Oxford Bank has $405 million of loans and $635 million of deposits. Premier Bank had $253 million of loans and $294.2 million of deposits on Dec. 31, based on call report data. 

If completed, the purchase of Oxford Bank would be the second-largest for a credit union, based on the seller’s asset size. The biggest deal lined up is VyStar Credit Union’s planned purchase of the $1.6 billion-asset Heritage Southeast Bank.

The deals would expand GreenState’s branch network beyond Iowa, though the credit union has more than 15,000 members in Illinois and Nebraska. 

“We are excited about the opportunity to expand GreenState’s footprint and serve people in these two, key markets,” Jeff Disterhoft, the credit union’s president and CEO, said in the release. “Both banks have a strong legacy of providing quality service and demonstrating community involvement, and we are pleased to welcome them – and their customers – into the GreenState family.” 

GreenState would gain six branches near Chicago as part of the Oxford deal and four locations after buying Premier Bank. The deals are expected to close by the fourth quarter. 

The announcement comes at a time when the Independent Community Bankers of America has stepped up its opposition to credit union-bank mergers in the wake of the proposed VyStar-Heritage Southeast deal.

Hovde Group advised Oxford Bank.