United Federal Credit Union in St. Joseph, Mich., has agreed to buy Griffith Savings Bank.
United, which bought Clearstar Financial Credit Union of Reno, Nev., after it failed in 2009, plans to enter into a purchase and assumption agreement for the ailing thrift, based in nearby Griffith, Ind.
Several credit unions have unsuccessfully tried to buy banks in recent years, including University of Iowa Community Credit Union and later the Iowa Credit Union League. Texas credit unions have operated their own bank, Town North Bank in Dallas, for years.
The $1.3 billion-asset United said in a press release that it would buy "all loans, investments, real estate, accrued interest receivables, and other banking-related assets" of the $80 million-asset Griffith. United estimated that, after a discount to the loan portfolio, that the assets were worth $81 million and that it will also take all of the thrift's deposits, Federal Home Loan Bank advances, and accrued interest payable. "Griffith will retaining certain assets that will be used to fund accrued liabilities relating to its employee benefit plans.
United expects to complete the acquisition in the third quarter.
