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News Now

CU System
Massachusetts CU to buy New Hampshire bank
GARDNER, Mass. (3/5/12)--GFA FCU, based in Gardner, Mass., will acquire a New Hampshire bank in a $6.4 million cash deal, the first such acquisition nationally by a credit union of a stock savings bank, according to announcements in local media.

The purchase price covers substantially all of Monadnock Community Bank's assets and liabilities and is 119% of book value, said the two institutions. It includes $5.50 for each of Monadnock's nearly 1.2 million outstanding shares. (Banker & Tradesman.com March 1 and Telegram.com March 2).  The price also represents 13.1% price-to-deposits and a 2.73% premium on core deposits as of Dec. 31.

The acquisition is pending approval of regulators and shareholders of Monadnock and on satisfaction of customary closing conditions, including the repayment of Troubled Asset Relief Program funds by Monadnock.  Monadnock reported a $1.8 million loss for 2011, said Banker & Tradesman.com.

The bank was initially chartered as AWANE CU in 1971, serving the Automotive Wholesalers Association of New England Inc., a nonprofit organization aimed at improving relations among wholesalers, manufacturers and dealers in the automotive parts industry, said the bank's website. It converted to a federally chartered savings bank in May 1996 and opened its retail banking office in November 1997 in Peterborough, N.H. It changed its name to the current name in October 2000.

GFA FCU has about $429 million in assets while Monadnock's assets total $82 million as of Dec. 31. They said they expect the deal will close during fourth quarter of 2012.


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