JOSEPH — Joseph-based Community Bank has announced plans to join forces with Spokane Teachers Credit Union in a deal agreed upon by the boards of both institutions.

Community Bank, founded in 1955, has seven branches in Wallowa, Union, Umatilla and Baker counties in Oregon and three in Walla Walla and Asotin counties in Washington. It has $550 million in total assets.

The Spokane Teachers Credit Union is a community-focused credit union that was founded in 1934. It serves more than 280,000 members, with a network of 39 branches spread across Eastern Washington, the Tri-Cities, the Columbia Basin and North Idaho. Headquartered near Spokane in Liberty Lake, Washington, STCU has $5.8 billion in total assets.

The two institutions have entered into a purchase and assumption agreement for STCU to acquire and assume substantially all the assets and liabilities of Community Bank.

When the transaction closes, the combined institution will have about $6.4 billion in total assets, and STCU will have 49 branches in Eastern Washington, the Columbia Basin, Tri-Cities, North Idaho and Eastern Oregon. The news of the deal was announced in a press release on Tuesday, Aug. 13.

Approval for the merger is required from the Oregon Division of Financial Regulation, the Washington Department of Financial Institutions, the National Credit Union Administration and the Federal Deposit Insurance Corporation. The boards of directors approved the merger, after the two institutions began talks about eight months ago, said Tom Moran, Community Bank president and CEO.

Once those agencies give their approval — expected in early 2025 — the companies can set a final date for the merger, according to Dan Hansen of STCU.

“Community Bank has been proud to support the communities of our region, and the many neighbors who are our customers,” Moran said. “As the banking and business environment of our region grows increasingly competitive, this transaction with STCU will ensure expanded product offerings, more locations and a continued high level of services.”

In identifying STCU as a partner, Moran noted that both institutions “share common core values, with a strong focus on supporting the financial wellbeing of our customers, communities and employees.”

Recently, Community Bank again demonstrated its support of the community by offering a zero-interest bridge loan to Wallowa County so the county fair could pay youths who sold livestock at the 4-H and FFA fat stock sale promptly rather than having to wait for payment. The bank also purchased animals in the sale.

Hansen said Moran and STCU President and CEO Ezra Eckhardt have been conferring to ensure the combined institution will maintain its support of local communities.

“We are committed to making this transaction as seamless as possible for Community Bank customers,” Eckhardt said. “We look forward to continuing Community Bank’s long tradition of supporting the communities it serves.”

Community Bank employees are being offered positions after the merger, STCU said.

Hansen said once the actual merger date is selected, “rebranding” — erection of new signs — will take place at the Community Bank branches.

Moran said Community Bank is in a strong financial position.

“The bank’s never been stronger,” he said, and the merger “allows us to strengthen our financial set.”