Royal Credit Union to acquire Capital Bank, Saint Paul
Wednesday, April 27, 2016
Royal Credit Union - Eau Claire, WI (April 27, 2016) - Royal Credit Union (Royal) announced today that it has entered into a definitive agreement to acquire Capital Bank, Saint Paul (Capital Bank). This acquisition will offer Royal the opportunity to enhance office accessibility to its current Minnesota Membership, as well as serve additional Members in Minnesota.
Under the terms of the agreement, Royal will assume approximately $35 million total assets in the transaction. Pending customary closing conditions, including obtaining regulatory approval, the completion of the transaction is expected to occur in the second half of 2016. Royal is committed to a smooth transition for the bank’s customers.
“We are pleased to announce the planned acquisition of Capital Bank which will provide more convenient access to our values-driven company in the Minneapolis-Saint Paul metropolitan area,” said Rudy Pereira, Royal Credit Union president/chief executive officer. “Capital Bank is known as the ‘community bank within the city’ and we feel its current customers will be pleased by our commitment to providing exceptional financial value, great service and community giveback where the Member comes first.”
Capital Bank has been in business since 1956. Originally chartered by businessmen owning businesses on Rice Street, the bank has remained under individual ownership and insured by the FDIC since its inception.
Current ownership has maintained control since 1993. The bank has maintained its community bank image, operating as a full service community bank on Rice Street in Saint Paul's North End for the past 60 years. The bank continues to serve many of its original customers who grew up in the neighborhood and continue to operate businesses in the area.
"It has been Capital Bank's privilege to serve our customers and the community,” said Michael Remmers, Capital Bank president. "It is important that the residents and businesses in the North End continue to receive personalized and outstanding services from an organization that will remain an active presence and driving force within our community. We believe Royal is well positioned and has the commitment and resources to be able to continue to deliver those community orientated products and services of the highest quality and value, to continue to our tradition of exceptional service, and to remain focused on supporting the community. We look forward to continuing to meet the needs of our customers to ensure a smooth transition."
Current Capital Bank ownership will retain its ownership in all of its other 14 bank locations in rural areas of Minnesota, Iowa, and North Dakota.
The Saint Paul urban location is the only bank affected by this sale.
Royal has a history of successful growth. Recent expansion includes opening a new office in Hudson, WI in 2014 and completing a merger with the Sacred Heart Hospital Employees Credit Union in Eau Claire, WI also in 2014. Once the agreement is finalized, Royal plans to service the acquired assets and assumed liabilities out of Capital Bank’s existing branch located at 1020 Rice Street in Saint Paul, MN.
About Royal Credit Union
Royal Credit Union is a federally insured credit union serving over 160,000 Members with 24 full service offices. Royal is driven by a core ideology which is built on strong purpose and values. You can open an account or apply for a low-rate loan at Royal Credit Union if you live or work in 18 counties in Western Wisconsin or 12 counties in Minnesota. Counties served in Wisconsin include Eau Claire, Chippewa, Barron, Buffalo, Burnett, Clark, Dunn, Jackson, Marathon, Pierce, Pepin, Polk, Rusk, St. Croix, Taylor, Trempealeau, Washburn, and Wood. Counties served in Minnesota include Anoka, Carver, Chisago, Dakota, Goodhue, Hennepin, Olmsted, Ramsey, Scott, Wabasha, Washington, and Winona. Realtors in the state of Wisconsin or Minnesota are also eligible to join the credit union. Visit rcu.org or call Royal Credit Union at 1-800-341-9911 for more information.
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