Gesa Credit Union has announced plans to acquire a Centralia-based bank.
Gesa, based in Richland, announced May 23 that it has signed an agreement to acquire all the assets and liabilities of Security State Bank.
This means all of Security State Bank’s 12 branches in Lewis, Thurston, Pacific and Grays Harbor counties will be transferred to Gesa. The bank, established in 1903, has $606 million in assets and 88 full-time equivalent employees, according to its most recent FDIC report from fourth quarter 2023.
Gesa Credit Union has more than $5.5 billion in assets and nearly 290,000 members.
The transaction with Security State Corp., the bank holding company, is expected to be completed in 2025, pending regulatory approval. It already has been unanimously approved by the boards of directors of both institutions. Security State Corp. and Security State Bank will each dissolve, and the corporation will distribute its remaining assets to its shareholders.
“Both Gesa and Security State Bank have shared the same values for over 70 years, with an unwavering dedication to the communities we serve,” said Don Miller, president and CEO of Gesa Credit Union, in a statement. “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.”
Dwayne Aberle, president of the Security State Bank, said the acquisition benefits its customers in today’s ever-increasingly competitive banking environment. “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,” he said in a statement, calling the move a “good fit” for the bank’s future.
Security State Corporation was advised in the transaction by Commerce Street Capital LLC, as exclusive financial advisor, and Paine Hamblen LLP as legal counsel. Commerce Street Capital LLC provided a fairness opinion to Security State. Gesa was advised by McQueen Financial Advisors, as exclusive financial advisor, and Luse Gorman, PC, as legal counsel.