Legacy Community Federal Credit Union Acquires First Community Bank of Cullman

News Summary

Legacy Community Federal Credit Union in Birmingham is set to acquire First Community Bank of Cullman, following unanimous board approval. This significant move marks Legacy’s first bank acquisition and aims to enhance financial services for the Cullman community. Established in 1955, Legacy serves approximately 39,000 customers, while First Community Bank, with roots dating back to 1905, has assets of $104 million. The acquisition could reshape the banking landscape in the region, pending regulatory approval.

Birmingham’s Legacy Community Federal Credit Union Expands Horizons with Exciting Acquisition

In a move that’s turning heads across the state, Legacy Community Federal Credit Union in Birmingham is all set to add First Community Bank of Cullman to its family. The two financial institutions have received unanimous approval from their boards of directors for this acquisition, marking a significant step for both entities.

History and Growth

Legacy Community Federal Credit Union isn’t just a fly-by-night operation; it has been serving the local community since being chartered in 1955. Over the years, it has established a strong reputation, operating nine full-service branches and planning to open two more later this year. Currently, the credit union boasts approximately 39,000 customers and assets totaling a whopping $644 million.

On the other hand, First Community Bank of Cullman has a rich heritage of its own. Founded in 1905, the bank has been a staple in Cullman for over a century, though it has a smaller footprint with one location and a team of just 15 employees. By December 2024, the bank reported assets of $104 million, a solid foundation for the acquisition.

The Financials

Diving deeper into the numbers, First Community Bank’s financial health shines through. It closed the previous year with $80 million in loans and $79 million in deposits, alongside a capital of $12.8 million. In a positive turn, the bank also saw its income rise to $674,000 in 2024, up from $600,000 the year before. This upward trend speaks volumes about its performance in an increasingly competitive market.

What This Means for the Community

The acquisition isn’t just a number game; it promises to enhance the experience for customers in and around Cullman. Legacy is committed to providing top-level financial solutions tailored to community needs. With Cullman County’s diverse economy—boasting a strong industrial base along with robust retail, healthcare, and agricultural sectors—this acquisition offers Legacy a strategic opportunity to expand its reach. The county has a population exceeding 92,000 and a GDP around $3.9 billion last year, indicating a thriving community ripe for financial engagement.

The Path Ahead

As the acquisition is an all-cash deal, it is still pending regulatory approvals before finalization later this year. This deal marks Legacy’s first bank acquisition, a curtain-raiser for what could be a new chapter in its long history. Plus, it’s noteworthy that this is the third announced credit union-bank acquisition of the year, signaling a trend across the financial sector.

Conclusion

For residents and customers, this news is a beacon of opportunity. Both Legacy Community Federal Credit Union and First Community Bank of Cullman are poised to enhance their services further, ensuring that what they offer meets the evolving needs of their community. As Birmingham watches closely, it’s clear that this acquisition has the potential to rewrite the script of banking in the region. Stay tuned for more updates on this exciting journey toward growth and community engagement!

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Additional Resources

• Legacy Community Federal Credit Union Acquiring Alabama Bank – AL.com
• Wikipedia: Banking
• Birmingham-Based Legacy Credit Union Acquiring First Community Bank – Bham Now
• Google Search: Legacy Community Federal Credit Union
• Legacy Credit Union to Acquire First Community Bank – CU Insight
• Google Scholar: Credit Union Bank Acquisition
• Alabama’s Legacy Credit Union Plans to Acquire First Community Bank – Credit Union Times
• Encyclopedia Britannica: Credit Union
• Alabama’s Legacy Community Federal Credit Union to Acquire First Community Bank – Banking Dive
• Google News: Birmingham Credit Union