The recent surge of credit union acquisitions of community banks continues.
The $1.5 billion-asset Scott Credit Union in Edwardsville, Illinois, said Friday it has agreed to buy Tempo Bank in Trenton, Illinois, for $14.25 million.
The deal is the fifth announced since Aug. 5 in which a credit union is buying a bank.
Shareholders of Sugar Creek Financial Corp., the holding company for the $92.9 million-asset Tempo Bank, would receive $14.50 to $16.50 per share.
Sugar Creek has 790,701 shares of common stock outstanding.
“Tempo Bank is proud of our long history of being locally owned and operated, and we’re excited to be joining another local financial institution that shares the same sense of pride in the Metro East,” Robert Stroh Jr., chairman, CEO and chief financial officer of Sugar Creek Financial and Tempo Bank, said in a press release. “We know our customers will benefit from all the additional resources that Scott Credit Union has to offer while knowing that their money is staying right here in the community.”
Stroh plans to retire after the deal closes, although he would serve as a consultant to Scott Credit Union for a period of time after the closing.
He has worked at the bank, which was founded in 1889, for more than 45 years.
“Tempo Bank is a well-managed bank, and we believe its robust mortgage lending portfolio will be beneficial to the credit union as we continue making strides for our goal of long-term growth,” Frank Padak, president and CEO of Scott Credit Union, said in the press release.
Padak said the acquisition will increase Scott Credit Union’s footprint to 22 branches across the Metro East and St. Louis area. The deal is part of Scott Credit Union’s strategic growth plan, which includes adding branches to better assist its members in Illinois.
The deal is expected to close in the second quarter of 2022. It is the 10th transaction announced this year in which a credit union is buying a bank. Thursday, Fairwinds Credit Union in Orlando, Florida,
There were seven such deals last year. The most ever announced in one year was 16 in 2019.
