Liberty Lake-based STCU has entered into a purchase-and-assumption agreement to acquire the assets of Joseph, Oregon-based Community Bank, a subsidiary of Community Bancshares Inc. 

The proposed acquisition has the potential to grow the credit union to $6.4 billion in total assets and 49 branch locations in Eastern Washington, Central Washington, North Idaho, and Eastern Oregon. 

If approved by regulators, the acquisition will mark STCU’s fourth merger or acquisition since 2020. 

In a press release, STCU President and CEO Ezra Eckhardt described the proposed transaction as aligned with the credit union’s commitment to rural communities across its footprint. The Community Bank acquisition is part of STCU’s strategy to expand its footprint, diversify assets, and add additional talent and expertise in each of the communities it serves, Eckhardt says. 

“We are committed to making this transaction as seamless as possible for Community Bank customers,” he adds. 

Community Bank has $550 million in total assets and 10 branches in Oregon and southeastern Washington. Upon completion of the acquisition, which is expected to occur early next year, Community Bank’s locations will become part of STCU’s branch network. STCU plans to maintain those branches and offer positions to all Community Bank employees. Following the transaction, Community Bank and Community Bancshares will dissolve, the press release states. 

Tom Moran, Community Bank president and CEO, says in a press release that the proposed acquisition stands to benefit Community Bank customers. 

“As the banking and business environment of our region grows increasingly competitive, this transaction with STCU will ensure expanded product offerings, more locations, and a continued high level of service," Moran says. 

STCU was founded by schoolteachers as Spokane Teachers Credit Union in 1934 and is headquartered at 1620 N. Signal, in Liberty Lake. It has $5.8 billion in assets, as of July 31, and more than 280,000 members. 

Since 2020, STCU has expanded its branch network in 12 small communities through similar mergers or acquisitions. As reported by the Journal of Business, those branches include former Umpqua Bank offices in Medical Lake and Othello, Washington, acquired in 2020, and former Banner Bank branches in Colville and Kettle Falls, Washington, acquired in 2022.