Royal Credit Union Completes Capital Bank Purchase
Monday, August 29, 2016
Credit Union Times (August 29, 2016) - The $1.8 billion Royal Credit Union completed its acquisition of Capital Bank in Saint Paul Monday.
The transition of Capital Bank’s branch took place over the weekend, and on Monday Capital Bank customers became members of Royal CU.
The Eau Claire, Wis.-based Royal CU assumed approximately $35 million in assets of the former bank.
“The acquisition allows Royal to offer more convenient access to our values-driven company in the Minneapolis-Saint Paul metropolitan area,” Rudy Pereira, Royal Credit Union president/CEO, said in a prepared statement.
This is the second completed credit union acquisition of a bank in 2016. The $1.2 billion Advia Credit Union in Parchment, Mich., finalized its acquisition of the $82 million Mid America Bank in Janesville, Wis., on Aug. 1.
On Friday, the $577 million Family Security Credit Union in Decatur, Ala.,said it plans to buy the $24.4 million Bank of Pine Hill in Pine Hill, Ala. That deal is expected to close during the first quarter of next year.
In addition to the purchase of Capital Bank, Royal CU is continuing to grow its presence in the Minnesota market.
Last month, the credit union entered into a definitive agreement to acquire the Apple Valley, Minn.-based branch of the $497 million Deerwood Bank. Royal said it will purchase assets of the branch and assume its deposits. Financial terms of the acquisition were not disclosed.
Pending customary closing conditions, including obtaining regulatory approval, the completion of the transaction is expected to occur later this year.
Deerwood Bank will retain ownership of all of its remaining 11 locations in Minnesota.