WACO, Texas—The $146-million First Central Credit Union has agreed to buy the Marlin, Texas, branch of Citizens State Bank, which is headquartered in Woodville, Texas.
The deal will bring the number of branches FCCU operates in this state to six.
“We welcome an opportunity that embraces our credit union’s goal of financial inclusion,” said FCCU President and CEO JoBetsy Tyler. “This expansion into Marlin and surrounding communities with new products, services, and technology will enhance the financial options for Falls County residents.”
“We are pleased to announce that we have entered into an agreement to sell our Marlin banking office to FCCU as we seek to consolidate our branch footprint in furtherance of our continued effort to focus our resources on the Harris County and Tyler County markets,” said Harry J. Brooks, CSB chairman, president, and CEO.
Under the terms of the purchase and assumption agreement, FCCU will assume certain deposit liabilities and acquire certain assets, including real estate, personal property, loans, and other assets, associated with the branch. Subject to the customary regulatory approval, the transaction is expected to close in the first quarter of 2023, the organizations stated in a joint release.
As of Dec. 31, the deposit and loan balances at the branch were approximately $26.3 million and $3.7 million, respectively, the release noted.
FCCU made $2.4 million in 2021 and $1.6 million through June of last year. The CU’s net worth is 14.15%, according to Call Report data.
Michael Bell, the pioneer of credit union purchases of banks, said the pace of CU purchases of branches will increase in 2023.
“Branch deals were rather quiet in 2022, but I am seeing a small pickup of this deal flow. I do expect more branch deals this year,” said Bell, the leader of the Financial Institutions Practice Group at Honigman LLP, which is representing FCCU.
Bell has been involved with nearly 50 credit union purchases of banks.
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