Gulf Winds Credit Union agrees to acquire Alabama bank

Gulf Winds Credit Union has agreed to purchase Peoples Exchange Bank, marking its second acquisition of a banking institution within a single month. The deal follows the credit union’s August agreement to buy Madison County Community Bank and precedes a scheduled rebranding exercise planned for next year. This strategic move is designed to consolidate the credit union’s presence in the Alabama market while expanding its overall asset base.

The acquisition of Peoples Exchange Bank will provide Gulf Winds with a second physical location in Monroeville, bringing its total number of branches in Alabama to four. According to a call report dated 30 June, Peoples Exchange Bank holds assets of 98.6 million dollars and operates a single branch. Upon completion of the transaction, Gulf Winds’ total assets are projected to reach 1.75 billion dollars. The credit union expects to receive final regulatory approval in mid-2027, with the full integration of both Peoples Exchange Bank and Madison County Community Bank anticipated to be complete by the start of 2028.

Harvey Gaston Jr., chief executive officer of Peoples Exchange Bank, stated that the partnership aligns with the institution’s values and vision for the future. He noted that joining forces with Gulf Winds allows the bank to expand its service offerings to long-standing customers and deepen its community impact. Similarly, Souers of Gulf Winds highlighted the shared belief in community investment and long-term relationships. He emphasised that the combination of both banks extends a shared commitment to prioritising customer needs while maintaining modern service with a human touch.

The transaction occurs against a backdrop of shifting trends in the financial sector. While bank mergers and acquisitions have generally increased in 2026, the specific pace of deals between credit unions and banks has slowed. The number of such transactions announced has decreased from a record 22 in 2024 to 16 last year, with only seven reported through the first nine months of the current year. Rebeca Romero Rainey, chief executive of Independent Community Bankers of America, has argued that credit union acquisitions of community banks can cause harm, citing rising mortgage denial rates as an example. Her organisation continues to urge lawmakers to end the federal tax exemption for credit unions with assets of one billion dollars or more.

Conversely, Scott Simpson, chief executive of America’s Credit Unions, has warned that changes to the tax code could negatively impact how credit unions support consumers and communities. He maintains that the tax-exempt status of these institutions benefits the financial well-being of 146 million credit union members across the United States.