OKLAHOMA CITY, Okla. – The $4.4-billion Tinker FCU here has agreed to purchase $286-million Prime Bank in Edmond, Okla.
“We’re excited about the prospect of providing expanded services to TFCU members and to customers of Prime as well,” said TFCU President and CEO Michael Kloiber.
As CUToday.info has reported, many credit unions that have acquired banks have focused on acquiring institutions with commercial lending skill. Tinker said the CU and its members will benefit from expanded small business and commercial banking services, including commercial lending, SBA financing expertise, member business checking and other business-related financial services.
The bank’s net income was $6.8 million in 2018 and just over $7 million in 2019, according to FDIC data.
“We have a lot of members and business partners who have been asking for member business loans and accounts, and this will allow us to bring on the expertise needed to provide those services in the best possible way,” Kloiber said.
“Prime’s customers will continue to receive the high level of service they have relied upon,” Kloiber said. “And will also have access to TFCU’s comprehensive range of consumer based financial services, such as auto lending, credit cards, mortgages, checking, money market accounts and many other consumer products and services.”
Employees Being Retained
TFCU said it will retain all of Prime’s employees and will operate the newly formed commercial division out of Prime’s existing branch location in Edmond.
“TFCU’s recognition for outstanding commitment to its members and its employees and focus on service aligns with the way we have operated Prime since its inception,” said Prime CEO Drew Litsch. “We look forward to working together to provide a smooth transition for our customers and team members.”
The acquisition, which has been unanimously approved by the boards of both institutions, is awaiting regulatory approval and is expected to close later this year, the CU stated. Financial terms of the transaction were not disclosed.
“The combination of Prime’s areas of business expertise with TFCU’s almost 75 years of experience with consumer financial services will create an extremely high level of long-term value to all of TFCU’s 400,000 members and Prime’s 2,000 customers,” Kloiber said.
‘Adding Depth’
Michael Bell, an attorney with Royal-Oak Mich.-based Howard & Howard who is representing Tinker, said this transaction is a prime example of high-level strategic thinking, diversification and growth.
“Tinker is adding depth, capability and earning assets in one measured, and well-thought-out acquisition,” stated Bell, who pioneered credit union acquisitions of banks leading to the completion of more than 30 to date.