Gesa Credit Union is expanding into Oregon for the first time through an agreement to acquire Salem, Oregon-based Willamette Valley Bank — a move Keven Gray, Gesa Credit Union chief retail officer, says will strengthen service for members while extending the cooperative financial institution's footprint along the Interstate 5 corridor. 

The all-cash transaction, announced in July, remains subject to both regulatory approval and shareholder approval from Oregon Bancorp Inc. — the publicly traded holding company and parent organization of Willamette Valley Bank. The deal is expected to close during the first half of 2027, according to a company news release.

Gray declines to disclose the cost of the acquisition.

Through this deal, Richland, Washington-based Gesa Credit Union is set to acquire its first retail branches in Oregon, merging Willamette Valley Bank's $465 million in assets and $358 million in deposits into a regional organization that already manages $6.8 billion in assets for over 322,000 members.

The acquisition aligns with Gesa's long-term strategy of improving access to financial services while investing in technology, expanding its branch network, and building scale to better serve members, Gray explains.

"We keep coming back to one question: How can we do better for our members?" Gray says. "Much of that answer runs through improving access, strengthening the digital experience, expanding the branch footprint, and growing the balance sheet, all while continuing the good we do in our communities and looking for ways to widen that impact."

Gray notes that the acquisition is supported by the bank's solid track record, its team of veteran bankers, and the extensive network of relationships it maintains across Oregon's Willamette Valley.

"Willamette Valley Bank has spent more than two decades earning trust across Linn and Marion counties," Gray says. "They come to this from strength, and so do we. That mutual strength is what made the conversation possible."

As planned, the acquisition will combine Gesa's financial resources with Willamette Valley Bank's established local relationships, allowing longtime bankers to continue serving customers while offering expanded lending capacity and products through the larger cooperative, he explains.

The acquisition also reflects a broader consolidation trend throughout the financial services industry, as Gray says increasing technology costs, cybersecurity investments, fraud prevention expenses, and regulatory compliance requirements continue making economies of scale more important for financial institutions of every size.

Industry data shows Washington led the nation with five of 22 announced credit union acquisitions of banks in 2024, Gray says. 

"I can't tell you whether Washington specifically will stay this active," he says. "What I can tell you is that we're preparing for an environment in which consolidation continues, and we're proud of how we've positioned this cooperative to evaluate opportunities as they arise."

The transaction also comes several months after Washington lawmakers changed the tax treatment for certain credit union acquisitions. State legislation that took effect Jan. 1 eliminated a business and occupation tax exemption that previously applied to Washington-chartered credit unions that merge with or acquire banks regulated by the Washington State Department of Financial Institutions. Under this new rule, qualifying in-state transactions are now subject to a 1.2% B&O tax, while out-of-state transactions — such as Gesa’s acquisition of Willamette Valley Bank — are not subject to this tax, according to information from the Washington State Department of Revenue. 

The legislation had no role in Gesa's decision to pursue Willamette Valley Bank, Gray says.

"The decision came down to the questions we ask about any opportunity," Gray says. "Would this be valuable to our existing members, to the bank's customers, and to the communities the bank serves? The answer was 'yes' on all three."

Additionally, the acquisition extends the credit union's presence into communities where members already live and work. The deal also advances Gesa's long-term growth strategy while keeping its focus on serving members rather than simply increasing size, he explains.

"Growth is imperative to serving our existing members and communities well," says Gray. "There's always a growth strategy in motion here, whether that's new products and services, new branches, or evaluating an acquisition like this one."

Upon completion of the transaction, Willamette Valley Bank's four branches in Linn and Marion counties and its loan office in Washington County will continue operating with the same staff while customers become member-owners of Gesa Credit Union. 

If the transaction is approved, rebranding is expected to occur immediately, Gray says.

Gesa recently surpassed 1,000 employees companywide, and Gray says Willamette Valley Bank has a workforce of 60. 

While the staff count reflects a growing regional presence, Gray maintains that the organization's fundamental priority remains different from that of a standard commercial bank. Gesa's cooperative structure allows earnings to flow back into member benefits and community investments instead of shareholder dividends, he says. 

Last year, Gesa returned $5.8 million to communities through charitable giving and community investments, logged more than 9,400 volunteer hours, conducted 324 financial education workshops that reached over 14,000 people, helped 735 homeowners — including 277 first-time buyers — and finished the year with nearly $1.4 billion in business loans, says Gray, citing company reports.

Those investments demonstrate that responsible growth enables Gesa to expand its community impact rather than diminish it, Gray says.

"Three to five years from now, I don't expect our approach to change much," he says. "We'll grow profitably so we can keep doing better and doing more. Gesa is positioned to keep growing and thriving, and to keep turning that growth into more for the members and communities we serve."

In Spokane County, Gesa operates five full services branches including locations on the South Hill, in North Spokane, and in Spokane Valley.