Nusenda Credit Union plans to acquire the $338 million-asset Western Heritage Bank in Las Cruces, New Mexico.
Financial terms of the deal were not announced. The transaction is expected to close next year.
When finalized, the combined company will have 29 branches and over 800 employees to serve more than 260,000 members, the Albuquerque-based Nusenda said in a press release Tuesday.
"Our cultures are strongly aligned, and we share a focus on putting people first. Providing local communities and businesses with best-in-class products and services, and supporting our employees, is a priority for both organizations," said Nusenda President and CEO
The deal is the first bank acquisition for the $4.1 billion-asset Nusenda. Three of the four deals announced this year involving credit unions buying banks have featured first-time bank buyers.
Last week, All In Credit Union in Daleville, Alabama, said it
By this time last year, nine credit union-bank deals had been announced. In total, there were 16
Nusenda's most recent merger with another credit union involved New Mexico Energy Federal Credit Union in 2013.
The Nusenda-Western Heritage deal also marks the first time a New Mexico community bank has been acquired by a credit union.
Greg Cory, President and CEO of Western Heritage Bank, called the deal a "win-win" for both organizations and their customers.
"Nusenda is recognized year-over-year as a top financial institution, winning 'best bank' and 'best credit union' awards and 'top workplace' honors," he said in the press release.
Attorney Mike Bell, who advised Nusenda on the deal, said in an interview that despite the pushback from bank
"The seller gets a good all-cash price for its shareholders and it gets a buyer that keeps the branches open and hires most if not all of the employees," Bell said.
He added that he expects to see more new buyers announce deals this year, covering new regions.
D.A. Davidson served as investment advisor to Western Heritage Bank and Fenimore Kay Harrison LLP served as legal advisor.
Nusenda earned $7.8 million in the first quarter of 2023, a 20% decrease compared with a year earlier, according to call report data from the National Credit Union Administration.
