Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
Massachusetts CU to buy New Hampshire bank
GARDNER, Mass. (3/5/12)--GFA FCU, based in Gardner, Mass., will acquire a New Hampshire bank in a $6.4 million cash deal, the first such acquisition nationally by a credit union of a stock savings bank, according to announcements in local media.

The purchase price covers substantially all of Monadnock Community Bank's assets and liabilities and is 119% of book value, said the two institutions. It includes $5.50 for each of Monadnock's nearly 1.2 million outstanding shares. (Banker & Tradesman.com March 1 and Telegram.com March 2).  The price also represents 13.1% price-to-deposits and a 2.73% premium on core deposits as of Dec. 31.

The acquisition is pending approval of regulators and shareholders of Monadnock and on satisfaction of customary closing conditions, including the repayment of Troubled Asset Relief Program funds by Monadnock.  Monadnock reported a $1.8 million loss for 2011, said Banker & Tradesman.com.

The bank was initially chartered as AWANE CU in 1971, serving the Automotive Wholesalers Association of New England Inc., a nonprofit organization aimed at improving relations among wholesalers, manufacturers and dealers in the automotive parts industry, said the bank's website. It converted to a federally chartered savings bank in May 1996 and opened its retail banking office in November 1997 in Peterborough, N.H. It changed its name to the current name in October 2000.

GFA FCU has about $429 million in assets while Monadnock's assets total $82 million as of Dec. 31. They said they expect the deal will close during fourth quarter of 2012.


RSS print
News Now LiveWire
.@TheNCUA open board meeting starts at 10 a.m. ET tomorrow. It is board member J. Mark McWatters' first. Watch @NewsNowLiveWire
9 hours ago
.@CFPB is proposing to oversee larger nonbank auto finance companies for the first time at the federal level.
10 hours ago
.@CUNA's Bill Hampel moderates a discussion on the future of credit unions in the post-100 million member world. http://t.co/kcXykiRQVn
12 hours ago
#Breaking: QE likely to end next month, @federalreserve says #NewsNow #Market http://t.co/u7Fb5l5fwM
13 hours ago
.@Experian study confirms that building a credit history is beneficial to financial marginalized communities. 64M are "credit invisibles"
13 hours ago