Wings Financial Credit Union of Apple Valley, Minn. on Friday announced its acquisition of $224 million-asset Neighborhood National Bank in Mora, Minn.
The $5.6 billion-asset credit union will convert the bank’s six locations into branches of Wings Financial. The bank's customers will be enrolled as members of the credit union.
The deal is pending both state and regulatory approval and is expected to close in the third quarter.
“It was vitally important to us that we find a buyer for the bank who would provide a comparable level of service and the full range of financial products our customers need,” Doyle Jelsing, Neighborhood National Bank president and CEO, said in a statement. “We found what we were looking for in Wings.”
The credit union serves over 287,000 members and will operate 30 branches across Minnesota upon the transaction’s completion.
Jelsing plans to retire once the deal is closed according to an employee of the credit union. No employee positions were eliminated as a result of the merger.
“We’re eager to welcome our new members; they will benefit from our services, our great rates and low fees,” Frank Weidner, Wings Financial’s president and CEO, said in a press release. “And, upon closure of the transaction, the Wings members living in these areas will gain additional convenience through these new branch locations.”
The pending transaction is the third bank-related deal for credit unions announced this year, though the first full-on acquisition. Alaska USA Federal Credit Union of Anchorage agreed to
Piper Sandler & Co. was the financial advisor for Wings Financial Credit Union while Foley & Mansfield PLLP was the legal counsel. CliftonLarsonAllen LLP was the financial advisor and Ballard Spahr LLP was the legal counsel for Neighborhood National Bank.
