Royal Credit Union Plans Minnesota Bank Branch Purchase
Tuesday, July 5, 2016
Credit Union Times (July 5, 2016) - The $1.7 billion Royal Credit Union said last week that it has entered into a definitive agreement to acquire the Apple Valley, Minn.-based branch of the $497 million Deerwood Bank.
This purchase shows that the Eau Claire, Wis.-based cooperative is continuing to expand its presence in neighboring Minnesota. In April, Royal signed a definitive agreement to buy Capital Bank in St. Paul, Minn., which is expected to be completed in the second half of the year.
Royal said in a prepared statement that it will purchase assets of the branch and assume its deposits. Financial terms of the acquisition were not disclosed.
Deerwood Bank will retain ownership of all of its remaining 11 locations in Minnesota.
Pending customary closing conditions, including obtaining regulatory approval, the completion of the branch transaction is expected to occur in the second half of 2016.
“We are excited to be expanding our office network to serve new and existing members in the Minneapolis-Saint Paul metropolitan area,” Royal President/CEO Rudy Pereira said. “Deerwood Bank takes pride in its commitment to community and that made the acquisition a good fit for our credit union. Royal is a values based company that puts its members first and supports the communities it serves.”
Deerwood Bank said the Apple Valley office was added as part of a merger with American Bank of St. Paul in 2015.
“Going forward, this transaction will further enable Deerwood Bank to focus on the St. Paul and Greater East Metro Markets with which we have a long and rich history,” John Ohlin, CEO of Deerwood Bank, said.