GreenState Credit Union to acquire seven bank branches in central Iowa

GreenState Credit Union in North Liberty, Iowa, has agreed to purchase seven branches and related assets from First American Bank in Fort Dodge, Iowa.

The $5.4 billion-asset credit union said on Tuesday that the branches are located in Fort Dodge and greater Des Moines.

“We are excited about the opportunity to enhance the financial wellbeing of Iowans throughout the Des Moines and Fort Dodge communities, while at the same time providing greater convenience for our existing members living in those areas,” Jeff Disterhoft, president and CEO of GreenState, said in a press release.

GreenState said on its website that the transaction involves about $200 million in loans and $500 million in deposits and will add 10,000 new members. GreenState currently has about 200,000 members.

The financial terms of the deal were not disclosed.

The $959 million-asset First American has seven branches in Iowa and three locations plus a loan production office in Florida, according to its website. Earlier this year, the $3.5 billion-asset MidFlorida Credit Union in Lakeland, Fla., agreed to buy certain assets and liabilities in Florida from First American. That deal, which is expected to close in November, includes $250 million in loans and $125 million in deposits.

“We are confident that GreenState’s consumer and mortgage business will blend well with our commercial banking and trust services,” John A. Fisher, CEO and president of First American, said in a press release. “The combination of the two financial institutions will be of great benefit to consumers, small businesses and our respective communities.”

The proposed transaction, which remains subject to regulatory approval, is expected to close in the fourth quarter.

GreenState is the new name for Iowa Community Credit Union, which was forced to rebrand due to a rider in the 2018 state budget that prohibits Iowa credit unions from using the names of state universities in their own name. The name change happened in early May.

GreenState posted net income of about $18.1 million in the first quarter of 2019, a 2.8% increase over the same period in 2018.

This story was updated at 5:03 P.M. on June 26, 2019.