In a deal that, if completed, would represent the largest
The $11.8 billion-asset Global, which was formerly known as
The bank's holding company, First Financial Northwest, plans to dissolve after the deal's expected completion in the fourth quarter of 2024. Based on First Financial Northwest's outstanding shares as of Dec. 31, 2023, the company expects its shareholders would be entitled to approximately $23.18 to $23.75 per share upon liquidation.
Anchorage-based Global said the transaction will expand its business and commercial services to all member businesses as well as enhance its branch presence in western Washington, where it began operations 40 years ago.
"This combination will continue to enhance service delivery and growth in a market that the credit union has been operating in for over four decades, adding numerous branches," said Geoff Lundfelt, president and CEO of Global FCU, in a press release. "First Financial Northwest Bank's branch network has a technology-forward design, accelerating the transformation to an environment with a structure and atmosphere more suited to conducting business in the future."
Joseph Kiley, president and CEO of First Financial Northwest Bank, said the bank expects the deal will provide numerous benefits for its customers, communities and employees.
"In addition, this transaction delivers substantial value to our shareholders who have supported us over the years," he said in the release.
The milestone of largest bank to sell to a credit union almost went to the $1.6 billion-asset Heritage Southeast Bank in Jonesboro, Georgia, but that 2021 deal — with
The Global deal is also the second in two days involving a credit union and a bank. On Wednesday, the $6.9 billion-asset Hudson Valley Credit Union said it has
Clare Cusack, president and CEO of the New York Bankers Association, said the "massive credit union expansion" in New York is far removed from Hudson Valley's original mission, which was to provide small-dollar loans to close-knit groups of people of modest means.
"Now, it seems their only mission is simply its own expansion," Cusack said. "A perfect example is this merger, which will create one of the largest financial institutions in the region — and a tax and required community investment loss to the same."
The Hudson Valley deal was the first whole-bank acquisition announced by a credit union in 2024, although All In Credit Union in Daleville, Alabama, last week said it has
There were 11 credit union deals for whole banks last year, down from the
Robert Flock, vice president in the office of strategic engagement for the American Bankers Association, said the magnitude of the Global FCU deal demonstrates the need for congressional oversight of the credit union industry.
"On top of recent developments regarding credit union lending practices, cybersecurity vulnerabilities and consumer compliance oversight, credit union-bank acquisitions raise serious questions about 'the credit union difference' so often touted by industry lobbyists," Flock said.
Attorney Mike Bell of Honigman, who advised Global FCU on the deal, said 2024 is likely to be an active year for credit union-bank mergers.
"These happen via a choice by buyers and sellers and only occur when both get a win," he said "There are no involuntary or hostile takeovers here, just two parties finding value for their stakeholders."
Global was also advised by McQueen Financial Advisors, as financial advisor, and First Financial Northwest was advised by Janney Montgomery Scott LLC, as financial advisor, and Fenimore Kay Harrison LLP, as legal counsel.
Global Credit Union lost $211,000 in the first three quarters of 2023, compared to earnings of $60.3 million a year earlier, according to call report data from the National Credit Union Administration.
Net income for Catskill Hudson Bank was $1.5 million through the first three quarters of 2023 compared to $4 million the year before, according to S&P Global Market Intelligence data.
