First American Acquisition

GreenState & First American Acquisition FAQ

Date: 6/25/2019

1. What are the facts with this acquisition?
   In June GreenState Credit Union entered into an agreement with First American Bank to purchase seven branch locations and the assets held by these branches. All are located in the central region of Iowa (Des Moines and Ft Dodge markets). Our plan is to convert the assets over to GreenState in December.
   
   
2. Is GreenState Credit Union acquiring the entire bank?
   No. The bank is selling to three institutions. GreenState is purchasing seven of their branch locations in Iowa and assets that are tied to these locations.
   
   
3. Is the purchase of bank assets by a credit union unprecedented?
   No. This type of transaction has occurred in several other states over recent years.
   
   
4. What makes this a good purchase for GreenState?
   It provides us the opportunity to enhance the financial well-being of First American Bank customers while at the same time providing added convenience for existing GreenState members living in Central Iowa.
   
   
5. What size is the acquisition?
   The acquisition represents approximately $200 million in loans and $500 million in deposits. We estimate welcoming roughly 10,000 new members. For comparison, GreenState is $5.5 billion in assets with 200,000 members.
   
   
6. How is this good for Iowans?
   As always, we keep Iowa assets in Iowa and, in accordance with our mission, continue to put money back into the pockets of Iowans. Beyond that, GreenState will continue First American Bank’s longstanding commitment to support the communities that they serve through charitable and volunteer support.
   
   
7. What due diligence was completed prior to this transaction?
   Careful research and evaluation have gone into making this decision. These types of major decisions normally undergo a great deal of scrutiny by our leadership team and the board of directors before any financial resources are committed. Any proposed acquisition is thoroughly analyzed from both a market and financial standpoint, and both the short and long-term benefits and risks are closely examined.
   
   
8. When will this be finalized?
   We are finalizing the formal package for our regulators. This requires regulatory approval (State as well as NCUA Board approval). We expect this will go in front of the NCUA Board sometime later this fall at which time we will have a final decision on consummation. Pending approval, we’re targeting a conversion date in May 2020.