PHILADELPHIA—The $4.9-billion American Heritage Federal Credit Union here has agreed to buy three branches of LINKBANK, which is headquartered in Camp Hill, Penn., the bank reported.
The transaction includes approximately $105 million of deposits and $123 million in loans, the bank said. The transaction price was not disclosed.
The three branches were previously part of the Liberty Bell Bank division of The Bank of Delmarva, which merged with LINBANK as part of the company’s recent merger with Partners Bancorp.
The state-chartered LINKBANK serves consumers via 29 locations across Pennsylvania, Maryland, Delaware, Virginia, and New Jersey.
“As we continue to execute on initiatives to achieve the operational efficiencies and revenue growth of the Partners combination, we believe this divestiture will enable us to re-allocate capital toward our core Pennsylvania markets and accelerate growth in the robust Northern Virginia and Maryland markets,” said LINKBANK CEO Andrew Samuel.
Profitable Bank
American Heritage made $40 million in net income in 2023 and $8.5 million through March. Capital stands at 8.53%, according to Call Report data.
The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the second half of 2024, the bank said.
Stephens Inc. served as financial adviser and Luse Gorman, PC provided legal counsel to LINK. Olden Lane Securities, LLC served as financial adviser and Honigman LLP and The Weber Firm, LLC provided legal counsel to American Heritage Federal Credit Union.
The pioneer of credit union purchases of banks, Michael Bell, said the current economy should spur more CU purchases of bank branches.
“As you can see the pace of branch transaction has materially increased. I expect this to continue for the balance of 2024 based on micro and macro-economic factors. The economy is driving sellers to get more efficient and deliver earnings to their shareholders,” said Bell, a partner and chair of the Financial Institutions Practice Group at Honigman.
Bell has been part of more than 50 whole-bank agreements, plus additional bank branch purchases.
Other Deals to Date in 2024
As CUToday.info reported earlier, other bank acquisitions announced by credit unions to date in 2024 include:
- The $4.7-billion TDECU in Lake Jackson, Texas, has agreed to buy the $1.2-billion Sabine State Bank and Trust, based in Many, La.
- The $1.9-billion Harborstone Credit Union in Lakewood, Wash., has announced plans to buy Mt. Vernon, Wash.-based SaviBank.
- The $2-billion Empeople Credit Union in Moline, Ill., acquired the $182-million TSB Bank in Lomira, Wis.
- Beacon Credit Union, Wabash, Ind., acquired Mid-Southern Savings Bank of Salem, Ind. for approximately $45 million.
- In Tacoma, Wash., the $2.9-billion Sound Credit Union here has agreed to buy $104-million Washington Business Bank, based in Olympia, Wash.
- The $2.9-billion Advia Credit Union, Kalamazoo, Mich., reached into Illinois with to purchase the $255-million NorthSide Community Bank.
- The $7-billion Hudson Valley Credit Union is purchasing the $593-million Catskill Hudson Bank in Kingston, N.Y., for $28.6 million.
- The $11.8-billion Global FCU in Anchorage, Alaska is buying the $1.5-billion First Financial Northwest Bank in Renton, Wash.
- The $7-billion Hudson Valley Credit Union here is purchasing eight locations from Boston-based Berkshire Bank.
- The $2.98-billion All-In Credit Union in Daleville, Ala. is buying five branches and the book of business from Louisville, Ala.-based 22nd State Bank.
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