Alabama One Credit Union in Tuscaloosa has agreed to buy First Bank of Linden in Linden, Ala.
Alabama One will pay cash for the $80 million-asset unit of First Linden Bancshares in the purchase-and-assumption transaction. It did not disclose the price.
The deal is expected to close by the second quarter of 2021 and is Alabama One's first to buy a bank.
The deal is another expansive move for Alabama One, which earlier this year absorbed Alabama Rural Electric Credit Union to gain statewide reach. Adding First Bank of Linden will extend the credit union’s reach in western and central Alabama while increasing its total assets to $825 million.
“We are delighted to partner with First Bank of Linden, especially as they share our focus on running a high-quality, low-risk institution with a strong commitment to both the community and to our customers,” Alabama One CEO Bill Wells said in a press release. “This transaction will also strengthen our presence in west Alabama, an area of our state we view as strategically important.”
Rosen Harwood advised Alabama One. Jones Walker served as First Bank of Linden's adviser.
Alabama One earnings for the first half of 2020 fell by 56% from a year earlier, to roughly $1.6 million, according to call report data from the National Credit Union Administration.
