Frontier Credit Union took a step toward expanding its operations into new territory with an agreement to acquire First Citizens Bank of Butte in Montana. The news drew the attention of community banking advocates concerned about the ongoing trend of bank purchases by tax-exempt credit unions.
With the acquisition, Frontier will add $75 million in assets held by First Citizens Bank to its approximately $700 million in holdings.
As a Montana-native, Frontier CEO Dan Thurman shared his excitement at the prospect of expanding his Idaho Falls-based business into familiar terrain.
“Having grown up in Dillon, it’s a dream having this chance to share Frontier with my home state,” Thurman said in a press release. “We’re not just expanding our footprint — we’re extending our mission of helping people build better lives. We can’t wait to be a part of the fabric here in Butte and serve this great community.”
The transaction is still awaiting regulatory approvals and expressed shareholder consent.
“This transaction brings tremendous opportunities for our customers and employees,” First Citizens Bank CEO Casey Reilly said. “It’s a natural fit — I’m excited our customers will be in the hands of someone who knows what makes Montana special. They know our community, share our values, and appreciate the uniqueness of Butte.”
Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued a statement reiterating her organization’s persistent concerns about the implications of large credit unions continuing to buy up community banks.
“As credit unions continue to stray far beyond their founding congressional mandate of serving people of modest means with a defined field of membership, such as those with the same church or employer, consumers increasingly support reforms to credit union policies,” Romero Rainey said. “For instance, recent ICBA polling conducted by Morning Consult found that 62 percent of U.S. adults say credit unions that operate like banks should have to pay taxes like banks and 62 percent support a congressional investigation of the credit union industry’s tax and regulatory exemptions.”
In 2024, First Citizens made $942,000 in 2024 while Frontier made $14 million, according to data collected by the Federal Deposit Insurance Corp.