Oklahoma City, home to Tinker Federal Credit Union. (Source: Shutterstock)The $4.2 billion Tinker Federal Credit Union in Oklahoma City announced Thursday it has agreed to acquire “substantially all of the assets and operations” of the $285 million Prime Bank in Edmond, Okla.
The proposed deal’s financial terms were not disclosed.
Founded in April 2008, Prime Bank posted $7 million in net income and an ROA of 2.55% at the end of last year, according to the FDIC.
The bank, which specializes in commercial lending to small businesses and other commercial clients, manages deposits of $245 million and $37.2 million in capital.
“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,” TFCU President/CEO Michael Kloiber said in a prepared statement.
Oklahoma’s largest credit union said it will retain all of Prime Bank’s employees and will operate the newly formed commercial division out of bank’s only branch, which serves about 2,000 customers.
The acquisition, which has been unanimously approved by the boards of both financial institutions, is expected to close later this year, pending regulatory approvals.
The proposed deal is the second credit union bank buy that has been publicly announced in 2020.
In February, Minnesota’s largest financial cooperative, the $5.6 billion Wings Financial Credit Union in Minneapolis, reached an agreement to buy the $221 million Neighborhood National Bank in Mora, Minn. That transaction is expected to close during the third quarter.
There were 15 credit union bank acquisitions announced in 2019.