Out-of-state Credit Union Buying Nebraska and Illinois Banks

GreenState Credit Union, an Iowa-based industry giant with 270,000 members and nearly $7.5 billion in assets, announced in May 2017 its plan to buy not one but two out-of-state banks in Nebraska and Illinois in an effort to expand its geographic footprint and fuel membership growth.

The acquisition targets include Oakbrook, Ill.-based Oxford Bank & Trust ($730 million in assets) and Omaha, Neb.-based Premier Bank ($345 million in assets), including its four physical branches in Omaha and Nebraska City.

The deals are expected to close later in 2021 and mark yet another example of a large credit union taking advantage of its tax status to buy community and regional banks at premiums based in part on the fact that credit unions do not pay federal income taxes.

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