Source: Shutterstock.The $716 million Alabama ONE Credit Union in Tuscaloosa, Ala., said Thursday it signed a purchase and assumption agreement to buy the $82 million First Bank of Linden.
Financial terms of the all-cash deal were not disclosed.
This is Alabama ONE’s first bank acquisition and the fifth credit union bank purchase agreement publicly announced this year. In 2019, there were 14 credit union bank buy deals announced.
Founded in 1904, the Bank of Linden’s 13 employees serve about 2,000 customers from one branch in Linden, Ala., a small city about 100 miles west of the state’s capital of Montgomery. According to the bank’s second quarter financials filed with the FDIC, First Bank of Linden posted deposits of $69 million, net income of $204,000 and capital of more than $12 million. The bank recorded an ROA of 0.51% and an ROE of 3.39%.
The bank purchase and the recent merger of the $38 million Alabama Rural Electric Credit Union in Montgomery with Alabama ONE will enable the credit union to expand its presence in the west and central parts of the state, the credit union said in a prepared statement.
The bank acquisition agreement has been unanimously approved by the boards of directors of both financial institutions.
If approved by bank shareholders and state and federal regulators, the proposed deal is expected to close no later than the second quarter of 2021, Alabama ONE said.