RICHLAND, Wash. and CENTRALIA, Wash., May 23, 2024
/PRNewswire/ -- Gesa Credit Union, a community-focused credit
union headquartered in Richland,
Washington, and Security State Corporation, the bank
holding company of Security State Bank, headquartered in
Centralia, Washington, jointly
announced today that they have entered into a definitive agreement
under which Gesa Credit Union will
acquire and assume substantially all of the assets and liabilities
of Security State Bank. The pending transaction is subject to
regulatory and shareholder approvals and other customary closing
conditions and is expected to be completed in 2025.
"Security State Bank has been a steadfast supporter of the
communities that we serve for more than 120 years now, and we have
earned the trust of both our customers and our employees during
this long time," said Dwayne Aberle,
President of the Bank, further stating that, "In today's
ever-increasingly competitive banking environment, we feel that
this transaction will provide uncountable benefits to these same
communities, customers, and employees that we have dedicated our
long tenure to, and we thank them all for that trust that they have
placed in us over all these years. We are excited to partner with
Gesa Credit Union in this
transaction, with the expanded products, services, locations, and
offerings that they will bring to our customers and employees." In
identifying Gesa as a good fit for the bank's future, Mr. Aberle
emphasized that both institutions "share common core values, with
the utmost focus placed on the wellbeing of their customers,
communities, and employees, throughout each institutions' long
histories."
Following completion of the transaction, all of Security State
Bank's 12 branches located in Lewis, Thurston, Pacific, and Grays
Harbor counties will be transferred to Gesa and become part
of its extensive member and branch service system.
"Both Gesa and Security State Bank have shared the same values
for over 70 years, with an unwavering dedication to the communities
we serve," said Don Miller,
President and CEO of Gesa Credit
Union. "This shared commitment has brought us together and
fueled our decision to enter this agreement, acting as a catalyst
for Gesa to continue to expand our footprint and service in the
Pacific Northwest. We are truly excited about the prospect of
empowering new communities and assisting more people on their
financial journeys."
The transaction has been unanimously approved by the boards of
directors of both institutions. Consummation of the transaction
remains subject to regulatory approval and approval by the
shareholders of Security State Corporation. Following completion of
the transaction, Security State Corporation and Security State Bank
will each dissolve, and the Corporation will thereafter distribute
its remaining assets to its shareholders.
Security State Bank customers and Gesa
Credit Union members should continue to conduct their
business as usual.
Security State Corporation was advised in the transaction by
Commerce Street Capital, LLC, as exclusive financial advisor, and
Paine Hamblen LLP as legal counsel. Commerce Street Capital, LLC
provided a fairness opinion to Security State. Gesa Credit Union was advised by McQueen
Financial Advisors, as exclusive financial advisor, and
Luse Gorman, PC as legal
counsel.
About Security State Bank
Security State Bank is a Washington-chartered commercial bank based in
Centralia, Washington. It has
approximately 600 million dollars in
assets and 12 branches serving the communities of Centralia, Chehalis, Morton, Rochester, Pe
Ell, Raymond, South Bend, and Grayland.
A wholly owned subsidiary of Security State Corporation,
Security State Bank has been providing banking services to local
residents, businesses and industry, farm families, the timber
industry, and local governments since its beginnings in
1903.
About Gesa Credit
Union
Gesa Credit
Union is one of Washington's largest credit unions, with over
$5.5 billion in assets, and is nearly
290,000 members strong. Gesa is a full-service financial
institution that offers a complete array of consumer, mortgage, and
business products and services. Headquartered in Richland, Washington, Gesa operates 31
branches, loan centers, full-service student-operated campus
branches at Washington State
University, and 13 student-operated high school branches
across Washington state. The Gesa
Community Foundation, established in 2022, further supports Gesa's
ongoing commitment to local communities and charitable giving,
which includes support for schools, Local Heroes groups, and
community organizations through its Affinity Debit Card Program, as
well as through its annual youth scholarships, and free financial
and educational resources available to members and the general
public. For more information, visit gesa.com.
Forward-Looking Statements
Certain statements in this news release contain "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995, such as statements relating to future plans and
expectations, and are thus prospective. Such forward-looking
statements are subject to risks, uncertainties, and other factors,
such as the businesses of Security State Bank and Gesa Credit Union may not be integrated
successfully or such integration may take longer to accomplish than
expected, the expected cost savings and any revenue synergies from
the acquisition may not be fully realized within the expected
timeframes, disruption from the acquisition may make it more
difficult to maintain relationships with customers, associates, or
suppliers, the required governmental approvals of the acquisition
may not be obtained on the proposed terms and schedule, or Security
State Corporation shareholders may not approve the acquisition, any
of which could cause actual results to differ materially from
future results expressed or implied by such forward-looking
statements. Although we believe that the assumptions underlying the
forward-looking statements are reasonable, any of the assumptions
could prove to be inaccurate. Therefore, we can give no assurance
that the results contemplated in the forward-looking statements
will be realized. The inclusion of this forward-looking information
should not be construed as a representation by the companies or any
person that the future events, plans, or expectations contemplated
by the companies will be achieved. All subsequent written and oral
forward-looking statements concerning the companies or any person
acting on their behalf is expressly qualified in its entirety by
the cautionary statements above. None of Security State Bank,
Security State Corporation, or Gesa Credit
Union undertake any obligation to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events, or otherwise, to reflect circumstances
or events that occur after the date the forward-looking statements
are made.
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SOURCE Gesa Credit Union