RICHLAND Wash.–Gesa Credit Union said it is acquiring Centralia, Wash.-based Security State Corp., the holding company of Security State Bank.
The $5.5-billion Gesa Credit Union said it will acquire and assume substantially all of the assets and liabilities of the $606-million Security State Bank, subject to regulatory and shareholder approvals and other customary closing conditions. The deal is expected to be completed in 2025. Terms of the deal were not released.
Gesa CU closed 2023 with $50.2 million in net income and 9.85% in net worth. The bank had $4.75 million in net income during the first quarter. Security State Bank is located approximately 225 miles west of Gesa Credit Union's headquarters.
Following completion of the transaction, all of Security State Bank’s 12 branches located in Lewis, Thurston, Pacific, and Grays Harbor counties will become part of Gesa, the credit union said. The bank has approximately 90 employees.
‘Steadfast Supporter’
“Security State Bank has been a steadfast supporter of the communities that we serve for more than 120 years now, and we have earned the trust of both our customers and our employees during this long time,” Security State President Dwayne Aberle said in a statement. “In today’s ever-increasingly competitive banking environment, we feel that this transaction will provide uncountable benefits to these same communities, customers, and employees that we have dedicated our long tenure to, and we thank them all for that trust that they have placed in us over all these years. We are excited to partner with Gesa Credit Union in this transaction, with the expanded products, services, locations, and offerings that they will bring to our customers and employees.”
Added Don Miller, president and CEO of Gesa Credit Union, “"Both Gesa and Security State Bank have shared the same values for over 70 years, with an unwavering dedication to the communities we serve. This shared commitment has brought us together and fueled our decision to enter this agreement, acting as a catalyst for Gesa to continue to expand our footprint and service in the Pacific Northwest. We are truly excited about the prospect of empowering new communities and assisting more people on their financial journeys."
The Advisors
Security State Corporation was advised in the transaction by Commerce Street Capital, LLC, as exclusive financial advisor, and Paine Hamblen LLP as legal counsel. Commerce Street Capital, LLC provided a fairness opinion to Security State. Gesa Credit Union was advised by McQueen Financial Advisors, as exclusive financial advisor, and Luse Gorman, PC as legal counsel.
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