Royal Credit Union is acquiring St. Paul bank
Wednesday, May 11, 2016
Minneapolis/St. Paul Business Journal (May 11, 2016) - Royal Credit Union of Eau Claire, Wis., is acquiring Capital Bank in St. Paul.
Royal Credit Union President and CEO Rudy Pereira expects to complete the bank's conversion to a credit union in the second half of the year, he said in a letter to customers. He plans to move the credit union's St. Paul offices from 325 E. Roselawn Ave. (in the St. Paul Realtors Association building) to Capital Bank's sole branch at 1020 Rice St.
"Royal is a values-driven company that puts its members first," Pereira wrote. "Our core ideology, built on a strong purpose and a solid set of values, led us to the decision to move forward with the agreement to acquire Capital Bank – a move we believe will have a positive impact on both current Capital customers and the St. Paul community."
Royal Credit Union had 169,071 members, 571 employees and $1.79 billion in assets at the end of March, according to the National Credit Union Association. The not-for-profit co-operative lender reported a $19.1 million profit for 2015.
Capital Bank reported a $204,000 profit for 2015 on $35.5 million in assets. The lender is well capitalized, according to Federal Deposit Insurance Corp. figures.
Rice Street businessmen founded the community bank in 1956. The bank's sellers also have ownership of 14 other bank locations in rural Minnesota, Iowa, and North Dakota that will not be affected by the sale.
"It has been Capital Bank's privilege to serve our customers and the community,” Capital Bank President Mike Remmers said in a prepared statement. "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."