Idaho credit union to acquire Montana bank for geographical expansion
Eight Bank Acquisitions by Credit Unions Announced in 2025
In a significant move, Frontier Credit Union has announced the acquisition of First Citizens Bank of Butte, marking its first expansion into Montana. This is the latest in a series of bank acquisitions by credit unions this year, bringing the total to eight as of July 2025.
The acquisition of First Citizens Bank will add $75 million in assets to Frontier's footprint and a single branch to its operations. Frontier's CEO, Dan Thurman, who grew up in Dillon, expressed his excitement about the opportunity to serve his home state. Similarly, Casey Reilly, First Citizens' CEO, expressed his excitement about the opportunity for their customers to be served by Frontier Credit Union.
The acquisition of First Citizens Bank is not an isolated event. In fact, it is the sixth whole-bank purchase by a credit union this year. The trend of credit unions acquiring banks has been on the rise, with a record-breaking 21 such acquisitions in 2024. This year's number of credit union-whole bank tie-ups is off pace compared to last year, but the momentum is clearly accelerating.
The ICBA (Independent Community Bankers of America) argues that credit unions' tax exemption allows them to offer a higher purchase price for small or struggling banks than other competing banks would. This, they claim, is a key factor driving the increase in bank acquisitions by credit unions. ICBA CEO Rebeca Romero Rainey has called for policymaker action regarding the increasing criticism of credit union tax and regulatory exemptions.
Other notable acquisitions this year include MidFlorida Credit Union's acquisition of Tallahassee-based Prime Meridian Bank and Salem, Oregon-based Maps Credit Union's acquisition of Oregon City-based Lewis & Clark Bank. The financial details of these deals, like the one with First Citizens Bank, were not disclosed.
As these acquisitions continue, concerns have been raised about credit unions straying beyond their founding congressional mandate of serving people of modest means. Consumers increasingly support reforms to credit union policies, according to ICBA. The acquisitions, however, are expected to bring expanded product offerings to the banks, including advanced digital banking tools and quick online loan applications.
The transaction is scheduled to close by the end of 2025. The San Francisco Federal Credit Union's acquisition of Summit Bank, announced in late July, represents the eighth such transaction this year, making 2025 a significant year for bank acquisitions by credit unions.
The San Francisco Federal Credit Union's acquisition of Summit Bank and Frontier Credit Union's acquisition of First Citizens Bank are two examples of the ongoing trend in the business and banking-and-insurance sectors, with a total of eight bank acquisitions by credit unions announced in 2025, signifying a significant shift in the industry finance landscape.
Credit unions, with their tax exemptions, have the advantage to offer higher purchase prices for small or struggling banks than other banks, driving the rise in bank acquisitions as seen in this year's record-breaking transactions.
