Royal Credit Union in Eau Claire, Wisconsin, said it is buying Lake Area Bank in Lindstrom, Minnesota.
No financial details were given. It's the third deal in the past week in which a credit union is acquiring a community bank. In the other two,
This is the eighth credit union-bank merger announced in 2021, surpassing the seven transactions reported in 2020, according to American Banker tallies.
The most deals of this type announced in one year was 16, recorded in 2019.
The deal for Lake Area Bank would be the second whole-bank acquisition for the $3.8 billion-asset Royal.
The credit union expanded in Minnesota through the acquisition of Capital Bank in St. Paul in August 2016. Royal also bought a branch of Deerwood Bank in Apple Valley, Minnesota, later that year.
In June, Royal said it
By acquiring the $441 million-asset Lake Area Bank, Royal said it will be able to offer more branch locations to its members in Minnesota and could potentially add more customers in the region.
“Royal is excited for the opportunity to bring our value proposition and commitment to making a positive impact in the lives we touch to expanded areas in Minnesota,” Brandon Riechers, Royal President and CEO, said in a press release Thursday. “Lake Area Bank is a family-owned financial institution that has served the community for over 100 years. Royal’s values-driven and relationship-based approach to financial management made this acquisition a good fit for our credit union.”
The deal is expected to close in the first quarter of 2022.
“Banks are voluntarily deciding to transact with CUs and the market is better for it,” said Michael Bell, an attorney with Honigman who advised Royal on the transaction. “The freedom to select your acquirer is important for shareholders, employees, customers and the community.”
Lake Area Bank was established in 1915 and is privately owned.
“Royal Credit Union shares our values and commitment to service, and we look forward to providing continued excellent service for many years to come,” Marc Campbell, Lake Area Bank's president and CEO, said in the release.
Winthrop & Weinstine acted as legal advisor and Oakridge Financial Services Group gave financial advice to Lake Area Bank. Honigman acted as the legal advisor to Royal.
