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Jacksonville, Florida-based Community First Credit Union of Florida will acquire Waycross, Georgia-based First Southern Bank, creating a $3.3 billion-asset institution. The transaction, unanimously approved by both boards, is expected to close in the second or third quarter of 2026. The combined entity will have approximately $2.5 billion in loans, $2.9 billion in deposits, and 31 branches, and will retain all First Southern employees. The deal is the second credit union-bank tie-up announced this week. The Independent Community Bankers of America criticized such deals, calling for policymakers to address their impact and for Congress to eliminate the tax exemption for credit unions with over $1 billion in assets. Michael Bell of Honigman disputed ICBA's claims.
GECU, a credit union based in El Paso, Texas, announced Monday it will acquire Bank of the Southwest, headquartered in Roswell, New Mexico. The deal will create a financial institution with $4.7 billion in assets, more than 30 branches, and 440,000 customers. It deepens GECU's presence in New Mexico, where it opened a single branch in Las Cruces last year. Bank of the Southwest has 11 branches in New Mexico, including one in Las Cruces. Financial details and timelines were not disclosed. The acquisition has board support but requires approval from the National Credit Union Administration, the New Mexico Financial Institutions Division, and the Federal Deposit Insurance Corporation. GECU President and CEO Crystal Long will lead the new institution. Bank of the Southwest CEO K. Andrew Hogan said the combined entity will expand commercial lending and offerings in New Mexico. Credit union-bank deals reached a record 22 last year, and Michael Bell of Honigman told CUToday that 2025 activity remains strong, likely finishing in the twenties despite political turbulence, NCUA staff reductions, and perceptions of regulatory delay.
Reseda Group, the credit union service organization of Michigan State University Federal Credit Union, has acquired Tandem, a couples-focused finance app, for undisclosed terms. The acquisition aims to create an end-to-end family banking ecosystem, supporting members through various life stages. Tandem, launched in 2023, has about 100,000 registered users and will relaunch its high-yield savings account with MSUFCU backing. Co-founders Dan Couvreur and Michelle Winterfield will become vice presidents at Reseda Group.
Suncoast Credit Union will begin offering Bloom+ to its 1.1 million checking account holders in November, allowing members to automatically report positive rent and utility payment data to TransUnion. The product, provided by Bloom Credit, scrapes up to two years of payment history to establish or bolster credit profiles. Suncoast EVP Darlene Johnson highlighted member control over reported bills and the potential to improve financial well-being. The deal follows Bloom's partnership with Navy Federal Credit Union and signals the fintech's expansion into banks.
While credit union acquisitions of banks are rare—only 100 out of 2,599 bank sales between 2012 and January 2025—some community banks are actively choosing credit unions as buyers. This piece explains that no bank is forced to sell to a credit union, and that community banks face competition primarily from other banks. It outlines reasons a credit union may be the smartest option: shared community presence, consistent local services, avoiding banking deserts, and better employee and branch retention. It also notes that most bank assets sold go to out-of-state banks, often leading to closures and layoffs, and argues that credit unions offer a mission-centered alternative for communities.
Decatur, Illinois-based Land of Lincoln Credit Union will purchase Williamsville State Bank and Trust in an all-cash transaction expected to close in the first half of 2026, growing to $576 million in assets and 18 branches. The deal marks the 10th credit union-bank acquisition this year. Separately, NCUA liquidated Members First of Maryland Federal Credit Union, with Aberdeen Proving Ground Federal Credit Union assuming its accounts.
North Haven, Connecticut-based Connex Credit Union disclosed a data breach involving roughly 172,000 individuals' personal information, including names, account numbers, debit card information, Social Security numbers, and government IDs. The credit union notified the Maine attorney general's office on Aug. 7 and said it has no reason to believe member accounts or funds were accessed without authorization. Connex launched an investigation after unusual activity on June 3 and identified affected individuals by July 27. It has set up a call center, is offering a year of free credit and identity protection through CyberScout, and warned customers about scammers impersonating employees. The credit union notified the National Credit Union Administration and federal law enforcement.
Metairie, Louisiana-based OnPath Credit Union will acquire Covington-based Heritage Nola Bancorp and its subsidiary Heritage Bank of St. Tammany in an all-cash deal worth $26 million, the companies announced Thursday. OnPath will also reimburse Heritage Bank up to $2 million for its liquidation account payout and up to $1 million for Heritage Nola Bancorp's tax liabilities. The transaction is expected to close in the second quarter of 2026. This follows a failed merger between Heritage Nola and MC Bancshares in 2024. Heritage Nola shareholders are expected to receive between $20.00 and $20.75 per share. OnPath has over $1.1 billion in assets. The deal is the ninth whole-bank credit union deal announced this year, raising concerns from the Independent Community Bankers of America about tax-exempt credit unions acquiring taxpaying community banks.
U.S. District Judge Amir Ali reinstated two Democratic NCUA board members, Todd Harper and Tanya Otsuka, fired by President Trump in April. The ruling rejected the government's claim of absolute removal authority, citing the board's fixed six-year terms and the precedent for independent financial regulators. The decision restores a quorum, allowing the NCUA board to vote on policy and enforcement actions. The case is part of a broader pattern of legal challenges to Trump's firings at independent agencies.
San Francisco Federal Credit Union will acquire Summit Bank in an all-cash deal expected to close in Q1 2026, adding three branches in Oakland, Emeryville, and Walnut Creek. The credit union plans to retain bank employees and enhance digital tools and commercial services. The deal marks the eighth credit union-bank purchase this year and the second in California in 2025. Terms were not disclosed. Summit Bank, the oldest woman-founded bank in California, has about $4.5 million in assets. The acquisition has drawn criticism from the ICBA over credit unions' tax exemption.