Page 13 - Winter 2023_Neat

Credit unions kick off 2024

with record-breaking bank buys

BY LAUREN SEAY Lauren leads S&P Global

H regulation reporting.
Market Intelligence's
udson Valley CU kicked off the
banking news and bank
new year with its acquisition of

Catskill Hudson Bancorp Inc.
subsidiary Catskill Hudson Bank,
marking the first time a New York

-based bank was targeted by a credit
union and the 10th-largest credit union-

bank deal ever, based on target assets.
But that deal was quickly overshadowed

the next day when Global FCU
announced its acquisition of First

Financial Northwest Inc. subsidiary First
Financial Northwest Bank, breaking
multiple records.

With $1.53 billion in assets at Sept. 30, 2023, First Financial Northwest Bank is
the largest bank targeted by a credit union ever, and the first bank with more
than $1 billion in assets set to be acquired by a credit union. First Financial Global FCU agreed to acquire substantially all assets and assume substantially
Northwest Bank is also the first bank with a holding company publicly traded all liabilities of First Financial Northwest Bank for $231.2 million in cash, subject
on a major exchange to be the target in an acquisition by a credit union.
to certain adjustments. First Financial Northwest and First Financial Northwest
Bank will wind down and dissolve after the purchase and assumption
transaction, and First Financial Northwest shareholders are expected to
receive about $23.18 to $23.75 per share upon liquidation. In comparison,
First Financial Northwest's closing price before the deal was announced was
$13.68.

Moreover, with $11.84 billion in assets at the end of the third quarter of 2023,
Global FCU is the largest credit union to strike a bank deal ever. Following the
acquisition, the credit union will have more than $13.36 billion in assets, based
on S&P Global Market Intelligence data as of the third quarter of 2023.

With the sheer size of the two bank targets involved in credit union deals
announced so far this year, 2024 has already surpassed last year's total target
assets with just two deal announcements.

A COMMUNITY BANKER | 13 | Winter 2024
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