SAN FRANCISCO—The $1.3-billion San Francisco FCU here has agreed to buy $287-million Summit Bank, based in Oakland, the credit union announced.
Following approvals by both boards and customary regulatory approvals, the acquisition is expected to be completed in the first quarter of 2026, SFFCU said.
The bank has been profitable, making $4.5 million in net income in 2024 and $906,000 through the first quarter of this year, according to FDIC data. The credit union made $2.9 million in net income through Q1 2025 and $22.8 million last year, according to Call Report data. Net worth is 11.73%.
“We are thrilled to welcome Summit Bank customers and employees to the San Francisco Federal Credit Union family,” said Ray Shams, president and CEO of San Francisco Federal Credit Union. “Community is central to our mission, and as we grow, we look forward to continuing to contribute to the economic vitality of Bay Area communities. We are committed to helping our members achieve their financial goals while fostering strong local partnerships.”
“This transaction with San Francisco Federal Credit Union is only the second announced credit union and bank transaction in California and one that rewards our loyal shareholders for supporting us for many years,” said Steve Nelson, president of Summit Bank. “San Francisco Federal Credit Union wants to come into Alameda and Contra Cost Counties and expand the products and services available to our borrowers and depositors. They want our staff to continue to provide the exceptional level of service that has been the foundation for Summit and that has kept customers loyal to our institution.”
CEO Advisory Group, Bancorp I, Inc. and McQueen Financial Advisors acted as financial advisors to San Francisco Federal Credit Union and Luse Gorman, PC and SW&M, LLP is serving as legal counsel to San Francisco Federal Credit Union. Hillworth Securities, LLC acted as financial advisor to Summit Bank and Gary Steven Findley & Associates is serving as legal counsel to Summit Bank.
“M&A in the small bank segment is really heating up,” said the pioneer of credit union bank buys Michael Bell. “There have been quite a few bank-to-bank deals announced and I expect that to continue to increase. I also expect that the credit union and bank deals will similarly increase. Expect to hear more announcements very soon.”
Bell, a partner and chair of the Financial Institutions Practice Group at Honigman, LLP, has been part of more than 75 whole-bank agreements plus additional bank branch purchases.
Jeffrey Cardone, partner at Luse Gorman, agreed with Bell.
"We are anticipating an increased pipeline of bank deals for the second half of 2025 due to a more stable economy and a favorable regulatory environment for M&A," Cardone said. "In particular, credit unions continue to desire to pursue bank M&A opportunities to achieve scale, expand market share and diversify their lines of business."
Glenn Christensen of CEO Advisory Group said San Francisco FCU's acquisition of Summit Bank is a prime example of two organizations despite their different charters having more commonalities than differences. "The north star for both was an exemplary commitment to their communities," Christensen said. "Bank acquisitions are a valuable tool in the growth strategy toolbox. Credit unions are increasingly using bank acquisitions for new market entry and in-market penetration strategies. Often bank acquisitions provide credit unions with the opportunity to gain scale faster and with less risk than through CU-to-CU mergers or organic growth."
ICBA Reacts--Again
Independent Community Bankers of America President and CEO Rebeca Romero Rainey attacked the deal.
“Credit unions have a mandate from Congress to serve people of modest means, though we repeatedly see growth-obsessed credit unions exploit their federal tax exemption to acquire taxpaying community banks and widen their already-massive footprints. Since 2010, more than 80% of acquisitions have involved a credit union with more than $1 billion in assets," she said. “Policymakers must uphold market choice for small businesses and consumers alike by addressing taxpayer-subsidized consolidation of the financial services landscape by billion-dollar credit unions.”