In a significant development within the banking sector of the Pacific Northwest, Gesa Credit Union, headquartered in Richland, Washington, has entered into a definitive agreement to acquire substantially all assets and liabilities of Security State Bank, a subsidiary of Security State Corporation based in Centralia, Washington. The transaction, expected to complete in 2025, is subject to regulatory and shareholder approvals, along with other customary closing conditions.

Security State Bank, a stalwart in local banking with a history spanning over 120 years, has built a solid foundation of trust and service in its community. “Security State Bank has been a steadfast supporter of the communities we serve for more than 120 years now,” said Dwayne Aberle, President of Security State Bank. He added that the union with Gesa Credit Union is set to “provide uncountable benefits to the communities, customers, and employees,” highlighting the synergy between the two institutions’ core values focused on customer and community wellbeing.

A Merger of Shared Values and Expanded Capabilities

This acquisition will see all 12 branches of Security State Bank across Lewis, Thurston, Pacific, and Grays Harbor counties transition to Gesa Credit Union, integrating into its substantial network of branches and enhancing service offerings to a broader member base. Don Miller, President and CEO of Gesa Credit Union, remarked on the shared ethos of both entities, noting, “Both Gesa and Security State Bank have shared the same values for over 70 years, with an unwavering dedication to the communities we serve.”

The strategic merger is expected to not only expand Gesa’s geographical footprint but also enhance its capabilities in serving an increasing number of members in the Pacific Northwest. This move aligns with Gesa’s ongoing mission to empower communities and assist more individuals on their financial journeys.

Unanimous Support and Future Outlook

The boards of directors of both Gesa Credit Union and Security State Corporation have unanimously approved the transaction. The completion of the deal remains contingent on obtaining necessary regulatory approvals and the green light from the shareholders of Security State Corporation. Post-transaction, Security State Corporation and Security State Bank will dissolve, with the latter distributing its remaining assets to its shareholders.

Security State Bank, established in 1903, serves a wide array of clients including local residents, businesses, the timber industry, and local governments. Gesa Credit Union, boasting assets over $5.5 billion and nearly 290,000 members, continues to be a leading financial institution in Washington, providing a full range of consumer, mortgage, and business products and services across its extensive network of branches and loan centers.

This acquisition is advised by Commerce Street Capital, LLC for Security State and McQueen Financial Advisors for Gesa, with legal counsel from Paine Hamblen LLP and Luse Gorman, PC, respectively.

The acquisition of Security State Bank by Gesa Credit Union marks a pivotal development in the banking landscape of Washington, promising enhanced services and greater reach within the community. As both institutions hold a long-standing commitment to their communities, this merger is poised to set a new standard in community-focused banking in the region.

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