GFA Federal Credit Union of Gardner will buy Monadnock Community Bank of Peterborough, N.H., for about $6.4 million in cash, according to a statement from the credit union.
If the deal is approved by regulators and Monadnock shareholders, it will be GFA’s first bank acquisition and the first credit union acquisition of a stock savings bank in the United States, according to GFA. The bank must also repay funds it received from the federal Troubled Asset Relief Program (more commonly known as TARP) in 2008, GFA said. The credit union expects the deal to take effect in the fourth quarter of 2012.
The bank will become a GFA branch, growing the credit union to nine branches, with seven in North Central Massachusetts and two in New Hampshire. GFA will grow its asset base to $429 million and its deposits to about $318.3 million.
