Gesa Credit Union has signed an agreement with Security State Corporation, the parent company of Security State Bank, to acquire all the assets and liabilities of the bank.
Based in Richland, Washington, Gesa is a full-service financial institution that offers consumer, mortgage, and business products and services, with over $5.5bn in assets and 290,000 members.
It operates 31 branches, loan centres, full-service student-operated branches at Washington State University, and 13 student-operated high school branches across Washington state.
The proposed transaction has been unanimously approved by the boards of directors of both parties.
It is expected to be completed in 2025, subject to regulatory and shareholder approvals and other customary closing conditions.
Gesa Credit Union president and CEO Don Miller said: “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.”
Established in 1903, Security State Bank is a commercial bank, based in Centralia, Washington, with around $600m in assets.
The bank operates 12 branches that serve the communities of Centralia, Chehalis, Morton, Rochester, Pe Ell, Raymond, South Bend, and Grayland.
It provides banking services to locals, businesses and industry, farm families, the timber industry, and local governments.
Upon closing, Security State Corp. and Security State Bank will be dissolved, and the Corporation will distribute its remaining assets to its shareholders.
All the 12 Security State Bank branches in Lewis, Thurston, Pacific, and Grays Harbor counties will become a part of Gesa’s extensive member and branch service system.
Commerce Street Capital served as the exclusive financial advisor and also provided a fairness opinion to Security State Corp., while Paine Hamblen was its legal counsel on this transaction.
McQueen Financial Advisors served as exclusive financial advisor, and Luse Gorman as legal counsel to Gesa Credit Union.
Security State president Dwayne Aberle said: “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.
“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.”
