YORK, Neb. -- First York Bancorp has agreed to acquire tiny Glenvil Cooperative CU, in a rare acquisition of a credit union by a bank.
The deal first requires approval from the Nebraska Department of Banking and Finance, said Kelly Holthus, president and chief executive of the $1.2 billion-asset First York, the holding company for Cornerstone Bank.
The $3 million-asset Glenvil approached First York about acquiring it because it was having problems hiring management, Holthus said.
Glenvil Cooperative is a single--branch credit union that has reported small losses four years in a row and had net worth of 5.4% at Sept. 30.
The deal must also be approved by the FDIC, Federal Reserve and NCUA.
Bank acquisitions of credit unions are rare, even as three different credit unions have agreed to buy banks over the past year.
First York has been active acquirer, purchasing four Nebraska community banks since January 2008.