Alabama’s Avadian Credit Union to Buy Citizens State Bank

Avadian Credit Union has agreed to buy Citizens State Bank in its home state of Alabama, in a move that marks the 13th time this year a credit union (CU) has acquired a bank.

According to published reports, the deal is expected to close by the third quarter of 2022. Citizens State Bank has two locations and $85 million in assets, but the value of the deal has not been disclosed.

As BankingDive reports, Avadian will have 19 locations and $1.2 billion in assets following the deal. The CU says Citizens Bank’s location enables it to expand into the western part of Alabama.

“We are delighted to partner with Citizens State Bank, especially as they share our focus on running a high-quality, low-risk institution with a strong commitment to both the community and to our members and customers,” Linda Cencula, Avadian’s president and CEO, said in a statement.

Anthony Burnett, Citizens State Bank’s president and CEO, called the deal “an attractive fit for our bank, offering a comprehensive set of products and services to our customers and an expanded geographic diversification.”

BankingDive notes that a number of credit unions have purchased banks this year, including Alabama Credit Union, which bought Security Federal Savings in August; Fairwinds Credit, which bought Citizens Bank of Florida; and Royal Credit Union of Wisconsin, which purchased Minnesota’s Lake Area Bank, all within a few weeks of each other this summer.

Read more: Credit Unions Mix Personal Service, 24/7 Digital Support to Win Small Business Customers

Worldwide credit union membership grew by 29% last year, according to a study by the World Council of Credit Unions, with CUs now counting more than 375 million members across 118 countries. This increase has been attributed to digital initiatives and COVID-driven financial assistance attracting new members, as well as continued membership retention efforts.

The latest edition of PYMNTS’ Credit Unions Tracker examined the challenge facing CUs: to take what they have and augment it with digital banking tools that can enhance the special relationship CUs have cultivated with their members.

Forty percent of adults say they would change FIs for a digital experience that provides them with more functionality. Already, 11% of CU members say they are seeking products from FIs that give them better online account management than their CU offers.