4Front Announces Strategic Acquisition of Old Mission Bank
On Jan. 10, 2023, 4Front Credit Union and Old Mission Bank announce that the two organizations have signed a definitive purchase and assumption agreement for 4Front to acquire the assets and assume the liabilities of Old Mission Bank, including Old Mission's branches in Sault Ste. Marie and Pickford.
The board directors from both institutions have unanimously approved the transaction. It is expected to close in late 2023, subject to customary closing conditions, the approval of Old Mission Bank’s holding company (Old Mission Bancorp Inc) stockholders, and regulatory approvals. The transaction would grow 4Front’s assets to nearly $1.2 billion and 20 branches.
Upon completion of the transaction, the Sault Ste. Marie and Pickford locations will operate as “Old Mission, a Division of 4Front Credit Union,” according to CEO Andy Kempf. 4Front will operate the two current branches and retain Old Mission Bank’s employees to continue serving its customers with expanded services. Old Mission Bank customers will become members of 4Front with full access to the credit union’s vast array of products and services.
“We believe in making banking smart and simple,” said Kempf. “We look forward to expanding our services in the Upper Peninsula to even more people through exceptional experiences, wherever they are on their financial journey.”
MCUL CEO Patty Corkery talked to American Banker about how, when banks leave a community, credit unions use the opportunity to grow their footprint to serve that community.
"Transactions where credit unions purchase bank assets are a win-win," said Corkery. "Bank customers become credit union member-owners and continue to thrive. Credit unions grow and enhance their products and offerings to all their members and bank employees keep their jobs."
"We are excited about our new partnership with 4Front Credit Union, which will bring expanded opportunities to our customers, employees, and communities while keeping the hometown feel,” said Gary Sharp, President and CEO of Old Mission Bank.
