GFA FCU's Bank Buyout Grabs Industry Interest
The proposed buyout by GFA Federal Credit Union of a troubled New Hampshire savings bank continues to generate industry interest but with a pivotal question: Can the credit union and bank clear the legal hurdles with the NCUA, the Comptroller of the Currency and the FDIC.
In the meantime, the president/CEO of the $345 million GFA of Gardner, Mass. expressed new confidence that the $6.4 million cash deal for the $82 million Monadnock Community Bank of Peterborough can pass the regulatory thicket and, in fact, demonstrates new cooperation between community banks and CUs.
GFA has said it expects the Monadnock move would strengthen its business lending capacity across the border in New Hampshire where it has an existing branch.
Both Bell and Garabedian agree that what has already been proven with the UFCU transaction, and potentially now with the GFA-Monadnock deal, is that credit unions can successfully buy banks.