Summit Credit Union in Madison, Wisconsin, has agreed to buy Commerce State Bank in West Bend, Wisconsin. It's the third time in the past 10 days a credit union announced it was acquiring a bank.
The $837 million-asset Commerce is one of the largest banks ever to agree to be acquired by a credit union.
The deal comes on the heels of two credit union-bank deals, both in Georgia. Last week,
There were 13 such deals announced in 2021, and 2022 is on pace to break the record of 16 seen in 2019.
“We have similar values, cultures and dedication to the highest levels of member and community service,” Kim Sponem, Summit’s president and CEO, said in a press release Thursday. “This is a terrific strategic fit. Commerce State Bank’s stellar commercial lending portfolio adds to our strengths in mortgage and small business lending, as well as helping people with their everyday financial needs.”
The $4.8 billion-asset Summit is the second-largest credit union in Wisconsin (the $5.8 billion-asset Landmark Credit Union is the largest) and is the largest mortgage lender in the state.
“When we opened Commerce State Bank nearly 17 years ago, we focused all efforts on serving our four core constituencies: clients, employees, communities and shareholders. Combining with Summit Credit Union significantly benefits each of them,” Commerce State CEO Joe Fazio said in the press release. “This transaction is about growing to serve current clients, expanding to new communities, rewarding our shareholders and providing career opportunities for employees of the combined company.”
Commerce employees will remain part of the combined organization, which will have 52 branches. The transaction is expected to close in the third quarter. In 2020, Summit acquired a branch from Associated Banc-Corp in Green Bay, Wisconsin.
“Community bank management, shareholders and investors continue to exercise their rights to consider [credit union] buyers,” said Mike Bell, an attorney with Honigman who represented Summit in the deal. “That said, these are and will remain a small minority of all transactions. In general, I do expect this geographic concentration to continue, but you will see more of these announced very soon, some of which are in different geography.”
