TACOMA, Wash.—The $2-billion Sound Credit Union here intends to purchase a branch of First Interstate Bank in Lynnwood, Wash., the CU announced.
The purchase includes the building as well as the branch’s retail and business deposits of more than $16 million. Three employees of First Interstate will join Sound Credit Union as part of agreement, ensuring a “continuity of service for the existing First Interstate clients,” Sound CU said.
The deal has been unanimously approved by Sound’s board of directors and is expected to close in the fourth quarter, pending regulatory approval. After the transaction closes, Sound will have more than 135,000 members at 29 branches throughout King, Pierce, Snohomish and Thurston Counties.
“We are looking forward to expanding our footprint and serving more members in Snohomish County,” said Don Clark, Sound Credit Union president and CEO. “This purchase will allow Sound to continue delivering world-class service to our members and build a stronger relationship with the local community. It also provides Sound with more office space to conduct daily business and better serve our northern territory.”
Michael Bell, a partner and co-chair of the Financial Institutions Practice Group at Honigman, LLP in Kalamazoo, Mich., which is representing Sound CU, said more bank branch deals are heading CUs’ way.
“As I mentioned when the pandemic arrived, there will be more and more opportunities for credit unions to buy bank branches as large and small banks begin to right size, find efficiencies and move more to digital,” said Bell, who has pioneered credit union purchases of banks—having completed more than 35 such deals, as well many bank branch buys.