HAPO Community Credit Union is acquiring Community First Bank.

The two financial institutions, both of which are based in the Tri-Cities, jointly announced the deal in a statement on Oct. 8. Terms were not disclosed.

The purchase and assumption agreement means HAPO will acquire and assume substantially of all of the assets and liabilities of Community First Bank.

When the deal is done, the new combined institution will have about $2.9 billion in assets, $2.5 billion in deposits and $2.2 billion in loans, and it will serve more than 220,000 members, with 25 branches across Washington and Oregon, the statement said.

The move combines the strengths of both institutions and allows HAPO to offer a broader range of products and services “while reinforcing the dedication demonstrated by both companies to the Tri-Cities and surrounding areas,” the statement said.

HAPO is “diligently working with (Community First) staff and (we) expect that most of the employees will accept our offer of employment,” HAPO said in a Q&A document.

The deal is expected to be finalized in the third quarter of 2025, subject to regulatory approvals, Community First Bank shareholder approval and closing conditions.

If it goes through, it’ll be part of a growing trend of credit union-bank deals. 

As of June, the year-to-date count of U.S. banks that announced plans to sell to credit unions was 12 – just two short of the record-breaking 14 announcements in 2022, S&P Global reported. The target assets of those 12 banks totaled $7.21 billion, squashing the previous record of $5.15 billion in 2022, the company reported.

Another credit union with a presence in the Tri-Cities also is going through a similar purchase-and-assumption process with a bank. The Liberty Lake-based STCU is acquiring the assets of the Joseph, Oregon-based Community Bank, a subsidiary of Community Bancshares Inc., the Spokane Journal of Business reported in August.

As for the HAPO-Community First Bank transaction, the boards of both institutions have signed off, and leaders of both institutions praised the proposed deal.

“We are excited to unite with Community First Bank in this strategic acquisition. Both HAPO and Community First Bank have long been committed to serving the Tri Cities and surrounding communities,” said Scott Mitchell, HAPO president and CEO, in the statement. “This acquisition will enhance HAPO’s capacity to support local economic growth and address the financial needs of residents and businesses more effectively. We are thrilled to welcome the talented team at Community First Bank and look forward to providing more services and solutions to our members.”

Eric Pearson, Community First Bank’s CEO, described the move as “an exciting and transformative milestone for both our clients and our dedicated team.”

“... We’ve always placed the highest value on our relationships with our clients and commitment to our loyal team as well as our role in the community,” he added in the statement. “This partnership allows us to elevate the services we provide while staying true to our core values of transparency, trust and a client-first approach. Together, we are creating a stronger future, delivering unmatched financial solutions, more opportunities for our employees, and deepening our commitment to the communities we serve.”

HFG Trust, a subsidiary of Community First Bank, will be restructured as an independent company, with the current management and staffing, the statement said. It will be owned by shareholders and overseen by a board of directors, HAPO said.

HAPO will be an investor in the company and its members will have the option to use HFG Trust's wealth management and trust services.

The priority in the months ahead is to ensure that service is uninterrupted, and that members and clients are kept updated, the joint statement said.

“Upon approval, all branches of Community First Bank will be integrated into HAPO’s extensive network, reinforcing the combined organization’s commitment to maintaining strong relationships with the people that choose to bank at HAPO,” the statement said.

The transaction is subject to approval by regulators and Community First shareholders, plus closing conditions. When it’s complete, Community First Bank will distribute its remaining assets to its shareholders, the statement said.

HAPO was advised by ALM First Analytics LLC, as exclusive financial advisor, and Honigman LLP, as legal counsel, the statement said.