The Federal Deposit Insurance Corporation is reporting that the application for First Savanna Savings Bank (Savanna, IL) to merge into Collins Community Credit Union (Cedar Rapids, IA) was withdrawn on June 18, 2020.
No explanation was provided for the withdrawal of the application.
This is the fourth application of a credit union acquiring a bank to be withdrawn this year.
Showing posts with label Bank-Credit Union Transaction. Show all posts
Showing posts with label Bank-Credit Union Transaction. Show all posts
Sunday, July 19, 2020
Thursday, July 16, 2020
Sharonview FCU to Buy Two S.C. Branches, Deposits and Loans from Bank OZK
Sharonview Federal Credit Union (Indian Land, SC) on July 15 entered into an agreement to with the Bank OZK (Little Rokc, SC) to purchase two branches in South Carolina.
The two branches -- Hilton Head Island and Bluffton -- have combined deposits of $107 million and $3 million in loans.
The deal is expected to close in the fourth quarter, pending regulatory approval.
The price tag of the deal was not disclosed, but the bank expects a small gain on the transaction.
After the transaction closes, Bank OZK will have no branch offices in South Carolina.
Read the Sharonview press release.
Read the Bank OZK press release.
The two branches -- Hilton Head Island and Bluffton -- have combined deposits of $107 million and $3 million in loans.
The deal is expected to close in the fourth quarter, pending regulatory approval.
The price tag of the deal was not disclosed, but the bank expects a small gain on the transaction.
After the transaction closes, Bank OZK will have no branch offices in South Carolina.
Read the Sharonview press release.
Read the Bank OZK press release.
Thursday, July 2, 2020
Heritage FCU to Buy Indiana Community Bank
Heritage Federal Credit Union (Newburgh, IN) has agreed to buy The Elberfeld State Bank (Elberfeld, IN).
Heritage FCU has almost $700 million in assets, as of the last call report.
The Elberfeld State Bank has three branches. The bank has $82.1 million in assets and $71.3 million in assets.
The deal needs the approval of the bank's shareholders and regulators.
The deal is expected to close in the first quarter of 2021.
The price of the transaction was not disclosed.
Read the story.
Heritage FCU has almost $700 million in assets, as of the last call report.
The Elberfeld State Bank has three branches. The bank has $82.1 million in assets and $71.3 million in assets.
The deal needs the approval of the bank's shareholders and regulators.
The deal is expected to close in the first quarter of 2021.
The price of the transaction was not disclosed.
Read the story.
Thursday, June 18, 2020
ABA Opposes NCUA's CU Bank Acquisition Proposed Rule
In a June 15 letter to the National Credit Union Administration, the American Bankers Association (ABA) vigorously opposed a proposal that would formalize a process for credit unions to purchase taxpaying banks.
ABA opined that credit unions -- aided by their tax advantage position -- are able to outbid taxpaying banks for the same deals.
ABA contended in its letter that credit unions are aggressively targeting banks for acquisition to expand their business lines, such as originating riskier business loans.
ABA also noted that many of these acquisitions are out-of-state. For example, ABA pointed out Grand Rapids, Michigan-based Lake Michigan CU's acquisition of Encore Bank, which operated in southwestern Florida.
Moreover, ABA wrote that these large credit unions are targeting banks serving wealthier communities outside of their chartered mandate to serve low- and moderate-income individuals.
ABA further stated that large credit unions acquiring tax-paying banks should be regulated similarly to the institutions they are purchasing.
Read the letter.
ABA opined that credit unions -- aided by their tax advantage position -- are able to outbid taxpaying banks for the same deals.
ABA contended in its letter that credit unions are aggressively targeting banks for acquisition to expand their business lines, such as originating riskier business loans.
ABA also noted that many of these acquisitions are out-of-state. For example, ABA pointed out Grand Rapids, Michigan-based Lake Michigan CU's acquisition of Encore Bank, which operated in southwestern Florida.
Moreover, ABA wrote that these large credit unions are targeting banks serving wealthier communities outside of their chartered mandate to serve low- and moderate-income individuals.
ABA further stated that large credit unions acquiring tax-paying banks should be regulated similarly to the institutions they are purchasing.
Read the letter.
Thursday, June 11, 2020
Crane CU to Acquire Small Indiana Community Bank
Crane Credit Union (Odon, IN) has signed a definitive agreement to acquire Community State Bank of Southwestern Indiana (Poseyville, IN).
Crane Credit Union has almost $636 million in assets.
Community State Bank of Southwestern Indiana has $89 million in assets and six branches.
The transaction is expected to close later this year and is subject to customary closing conditions, including approval from the bank's shareholders and regulatory agencies.
The price tag of the deal was not disclosed.
Read more.
Crane Credit Union has almost $636 million in assets.
Community State Bank of Southwestern Indiana has $89 million in assets and six branches.
The transaction is expected to close later this year and is subject to customary closing conditions, including approval from the bank's shareholders and regulatory agencies.
The price tag of the deal was not disclosed.
Read more.
Sunday, June 7, 2020
New Buffalo Savings Bank Becomes Teachers Credit Union (Updated)
Teachers Credit Union (South Bend, IN) completed its acquisition of New Buffalo Savings Bank (New Buffalo, MI) on June 5.
The bank will re-open on June 8th as Teachers Credit Union.
Shareholders of New Bancorp, the holding company of the bank, will be paid $26 per share; but the price could be less based on the level of post-closing expenses and other factors.
This is the seventh merger of a bank into a credit union completed this year.
Read more.
Read press release.
The bank will re-open on June 8th as Teachers Credit Union.
Shareholders of New Bancorp, the holding company of the bank, will be paid $26 per share; but the price could be less based on the level of post-closing expenses and other factors.
This is the seventh merger of a bank into a credit union completed this year.
Read more.
Read press release.
Wednesday, June 3, 2020
Bank Credit Union Merger News
The Office of the Comptroller of the Currency (OCC) approved on May 19, 2020 the sale of Neighborhood National Bank (Mora, MN) to Wings Financial Credit Union (Apple Valley, MN).
3River Credit Union (Fort Wayne, IN) completed its acquisition of West End Bank (Richmond, IN) on June 1, 2020.
3River Credit Union (Fort Wayne, IN) completed its acquisition of West End Bank (Richmond, IN) on June 1, 2020.
Monday, May 25, 2020
Acquisition of Ben Franklin Bank by CU Completed
Corporate America Family Credit Union (Elgin, IL) completed its acquisition of Ben Franklin Bank of Illinois (Arlington Heights, IL) on April 30, 2020.
The Federal Deposit Insurance Corporation approved the merger on April 13, 2020.
Corporate America Family CU had $617 million in assets, as of March 2020. Ben Franklin Bank had $93 million in assets at the end of the first quarter of 2020.
The Federal Deposit Insurance Corporation approved the merger on April 13, 2020.
Corporate America Family CU had $617 million in assets, as of March 2020. Ben Franklin Bank had $93 million in assets at the end of the first quarter of 2020.
Thursday, May 14, 2020
Indiana DFI Approved Merger of West End Bank into Three Rivers FCU
The Indiana Department of Financial Institutions (DFI) on May 14 approved the resolution of the Board of Directors of West End Bank, S.B. (Richmond, IN) to sell all of its assets to Three Rivers Federal Credit Union (Fort Wayne, IN).
Three Rivers FCU will also assume most of the liabilities of West End Bank.
National Credit Union Administration (NCUA) worked with the credit union to alter its field of membership from a community charter to a multiple common bond charter, so that it could acquire West End Bank's customers.
West End Bank has $288 million in assets and $30.6 million in bank equity capital, as of December 31, 2019.
Three Rivers FCU has $1.26 billion in assets as of March 31, 2020.
The purchase price is $43.3 million with conditions.
The Federal Deposit Insurance Corporation approved the application last week and the NCUA is expected to approve the application on May 15.
The vote was unanimous.
Three Rivers FCU will also assume most of the liabilities of West End Bank.
National Credit Union Administration (NCUA) worked with the credit union to alter its field of membership from a community charter to a multiple common bond charter, so that it could acquire West End Bank's customers.
West End Bank has $288 million in assets and $30.6 million in bank equity capital, as of December 31, 2019.
Three Rivers FCU has $1.26 billion in assets as of March 31, 2020.
The purchase price is $43.3 million with conditions.
The Federal Deposit Insurance Corporation approved the application last week and the NCUA is expected to approve the application on May 15.
The vote was unanimous.
Tuesday, May 12, 2020
Merger Between Suncoast CU and Apollo Bank Called Off
Apollo Bank (Miami, FL) and Suncoast Credit Union (Tampa, FL) have mutually agreed to terminate their planned merger, according to the Miami Herald.
The decision to withdraw the merger application with Suncoast’s regulator, the National Credit Union Administration, follows a series of coronavirus-related regulatory delays.
Read the story.
The decision to withdraw the merger application with Suncoast’s regulator, the National Credit Union Administration, follows a series of coronavirus-related regulatory delays.
Read the story.
Sunday, May 3, 2020
New Buffalo Savings Bank and Teachers CU Adjust Price of the Transaction
New Buffalo Savings Bank (New Buffalo, MI) and Teachers Credit Union (South Bend, IN) announced on May 1 an update on the previously-announced purchase and assumption transaction.
The original terms of the transaction had shareholders receiving $28.42 per share in cash for each share of outstanding New Bancorp common stock. Under the revised terms, New Bancorp shareholders will receive $26.00 per share in cash for each share of outstanding New Bancorp common stock.
The adjustment in the per share price was based primarily on a significant increase in the termination cost of New Buffalo’s defined pension plan due to the unprecedented decline in long-term interest rates, as well as significant economic and market uncertainties related to the COVID-19 pandemic.
The transaction has received all regulatory approvals required to complete the transaction and expects to close the transaction on June 5, 2020, subject to obtaining the approval of the New Bancorp stockholders at a special meeting to be held on June 4, 2020 and the satisfaction of customary closing conditions.
Read the press release.
The original terms of the transaction had shareholders receiving $28.42 per share in cash for each share of outstanding New Bancorp common stock. Under the revised terms, New Bancorp shareholders will receive $26.00 per share in cash for each share of outstanding New Bancorp common stock.
The adjustment in the per share price was based primarily on a significant increase in the termination cost of New Buffalo’s defined pension plan due to the unprecedented decline in long-term interest rates, as well as significant economic and market uncertainties related to the COVID-19 pandemic.
The transaction has received all regulatory approvals required to complete the transaction and expects to close the transaction on June 5, 2020, subject to obtaining the approval of the New Bancorp stockholders at a special meeting to be held on June 4, 2020 and the satisfaction of customary closing conditions.
Read the press release.
Thursday, April 30, 2020
Tinker FCU to Acquire Prime Bank
Tinker Federal Credit Union (Oklahoma City, OK) announced on April 30 it has entered into an agreement to acquire substantially all of the asset and operations of Prime Bank (Edmond, OK).
Prime Bank has almost $286 million in assets at the end of 2019.
Tinker FCU has approximately $4.4 billion in assets.
The acquisition was unanimously approved by the boards of both institutions and is awaiting approval and is expected to close later this year.
The price tag of deal was not disclosed.
This is the first acquisition of an Oklahoma bank by an Oklahoma headquartered credit union.
Read the news story.
Prime Bank has almost $286 million in assets at the end of 2019.
Tinker FCU has approximately $4.4 billion in assets.
The acquisition was unanimously approved by the boards of both institutions and is awaiting approval and is expected to close later this year.
The price tag of deal was not disclosed.
This is the first acquisition of an Oklahoma bank by an Oklahoma headquartered credit union.
Read the news story.
Saturday, April 25, 2020
First Commerce CU Completed Acquisition of Georgia Community Bank
First Commerce Credit Union (Tallahassee, FL) completed its acquisition of The Citizens Bank (Nashville, GA) on April 1, 2020.
Georgia Department of Banking and Finance approved the bank's application to dissolve the bank on March 12, 2020.
On March 13, 2020, the Federal Deposit Insurance Corporation approved the merger.
Georgia Department of Banking and Finance approved the bank's application to dissolve the bank on March 12, 2020.
On March 13, 2020, the Federal Deposit Insurance Corporation approved the merger.
Monday, March 16, 2020
First Community CU Plans to Buy 3 Branches from Umpqua Bank
First Community Credit Union (Coquille, OR) announced on March 11 that it has entered into a purchase and assumption agreement with Umpqua Bank (Roseburg, OR) to acquire three store (branch) locations in Oregon.
The branch locations included in the transaction are located in John Day, Burns, and Lakeview.
According to the June 2019 Summary of Deposits data, the John Day branch had $28.6 million in deposits, the Burns branch had $32.6 million in deposits, and the Lakeview branch had $37 million in deposits.
The agreement is subject to regulatory approval and is expected to close in June of this year.
The price tag of the transaction was not disclosed.
Read the press release.
The branch locations included in the transaction are located in John Day, Burns, and Lakeview.
According to the June 2019 Summary of Deposits data, the John Day branch had $28.6 million in deposits, the Burns branch had $32.6 million in deposits, and the Lakeview branch had $37 million in deposits.
The agreement is subject to regulatory approval and is expected to close in June of this year.
The price tag of the transaction was not disclosed.
Read the press release.
Sunday, March 8, 2020
Settlement Agreement Ends Dispute on Bank Selling to CU
On March 6, First American Bank and the Iowa Division of Banking entered into a settlement agreement allowing the bank to sell its Iowa assets and branches to a credit union.
Both parties decided it was in the best interest of all, especially First American Bank's customers, to settle this dispute. Both parties recognized that litigation could take months, if not years, to resolve the issue to the detriment of First American Bank's customers.
As background, GreenState Credit Union (North Liberty, IA) completed its acquisition of First American Bank (Fort Dodge, IA) on February 28.
However, the Iowa Division of Banking on March 2 blocked the sale of First American Bank’s remaining Iowa-based assets and branches to GreenState Credit Union. The banking regulator also directed the bank and the credit union to maintain separate records until the matter is resolved.
But First American Bank asserted that it did not need the prior approval of the Superintendent before the transaction closed and disputed the Superintendent's decision to deny the bank's application and effectively block the sale.
As part of the settlement, a state chartered bank must obtain the approval of the Superintendent before voluntarily ceasing the business of banking.
The superintendent understands that First American Bank was confused about whether it needed the approval of the Superintendent before closing the deal with GreenState CU. Part of the confusion arose from First American Bank in 2019 selling its Florida branches and assets to MID-FLORIDA Credit Union without the prior approval of the Iowa Division of Banking. But the Division of Banking did not object to the sale, because the bank still had significant assets and deposits and was still actively engaged in the business of banking.
Due to the unique circumstances of this transaction, the Superintendent agreed to approve First American Bank's application. But the approval of this application should not be construed as setting precedent where an Iowa state-chartered bank can sell substantially all its assets and liabilities to a credit union.
First American Bank agreed to pay $110,700 to cover cost incurred by the Division of Banking associated with the application.
First American Bank does not necessarily agree with the Superintendent's position on the legal issues addressed in the settlement agreement. The settlement agreement should not be interpreted as an admission of wrongdoing by the bank. Both parties have agreed to disagree regarding their respective positions.
Both parties decided it was in the best interest of all, especially First American Bank's customers, to settle this dispute. Both parties recognized that litigation could take months, if not years, to resolve the issue to the detriment of First American Bank's customers.
As background, GreenState Credit Union (North Liberty, IA) completed its acquisition of First American Bank (Fort Dodge, IA) on February 28.
However, the Iowa Division of Banking on March 2 blocked the sale of First American Bank’s remaining Iowa-based assets and branches to GreenState Credit Union. The banking regulator also directed the bank and the credit union to maintain separate records until the matter is resolved.
But First American Bank asserted that it did not need the prior approval of the Superintendent before the transaction closed and disputed the Superintendent's decision to deny the bank's application and effectively block the sale.
As part of the settlement, a state chartered bank must obtain the approval of the Superintendent before voluntarily ceasing the business of banking.
The superintendent understands that First American Bank was confused about whether it needed the approval of the Superintendent before closing the deal with GreenState CU. Part of the confusion arose from First American Bank in 2019 selling its Florida branches and assets to MID-FLORIDA Credit Union without the prior approval of the Iowa Division of Banking. But the Division of Banking did not object to the sale, because the bank still had significant assets and deposits and was still actively engaged in the business of banking.
Due to the unique circumstances of this transaction, the Superintendent agreed to approve First American Bank's application. But the approval of this application should not be construed as setting precedent where an Iowa state-chartered bank can sell substantially all its assets and liabilities to a credit union.
First American Bank agreed to pay $110,700 to cover cost incurred by the Division of Banking associated with the application.
First American Bank does not necessarily agree with the Superintendent's position on the legal issues addressed in the settlement agreement. The settlement agreement should not be interpreted as an admission of wrongdoing by the bank. Both parties have agreed to disagree regarding their respective positions.
Monday, March 2, 2020
GreenState CU Completes Acquisition of Iowa Bank
GreenState Credit Union (North Liberty, IA) completed its acquisition of First American Bank (Fort Dodge, IA) on February 28.
GreenState CU has almost $5.8 billion in assets. First American Bank had $675 million in assets, as of its last Call Report.
Michael Bell, a lawyer at Howard & Howard, advised on this deal.
GreenState CU has almost $5.8 billion in assets. First American Bank had $675 million in assets, as of its last Call Report.
Michael Bell, a lawyer at Howard & Howard, advised on this deal.
Monday, February 17, 2020
NCUA's Harper: NCUA's Consumer Compliance Oversight Lacks Robustness
In an opinion piece appearing in CU Today, National Credit Union Administration (NCUA) Board Member Todd Harper wrote that customers of a bank acquired by a credit union will not have the same level of consumer financial protection oversight in their new credit union.
He pointed out in the column that the Federal Deposit Insurance Corporation (FDIC) has a more robust consumer compliance program than NCUA.
He noted that FDIC regularly conducts dedicated consumer compliance reviews that are separate and apart from safety and soundness exams, while NCUA with the exception of fair lending exams combines consumer compliance exams as part of the agency's safety and soundness exams performed NCUA's regional offices.
The agency has only budgeted for 30 fair lending examines in 2020. Also, the consumer compliance exams conducted by NCUA's regional offices will only cover some of the many consumer financial protection laws on the books.
He further stated that the agency has only 15 or so regional examiners, who are consumer compliance subject matter experts. In comparison, the FDIC has hundreds of examiners committed to performing these exams.
Despite his reservations about the agency's consumer compliance oversight gap, he still supports the agency's proposed rule on combination transactions.
Read the opinion piece.
He pointed out in the column that the Federal Deposit Insurance Corporation (FDIC) has a more robust consumer compliance program than NCUA.
He noted that FDIC regularly conducts dedicated consumer compliance reviews that are separate and apart from safety and soundness exams, while NCUA with the exception of fair lending exams combines consumer compliance exams as part of the agency's safety and soundness exams performed NCUA's regional offices.
The agency has only budgeted for 30 fair lending examines in 2020. Also, the consumer compliance exams conducted by NCUA's regional offices will only cover some of the many consumer financial protection laws on the books.
He further stated that the agency has only 15 or so regional examiners, who are consumer compliance subject matter experts. In comparison, the FDIC has hundreds of examiners committed to performing these exams.
Despite his reservations about the agency's consumer compliance oversight gap, he still supports the agency's proposed rule on combination transactions.
Read the opinion piece.
Thursday, February 13, 2020
Retiring Illinois Bankers Exec Says Brazen CU Behavior Is Getting Noticed by Lawmakers
In an article appearing in BankBeat, Linda Koch, who will retire this summer as the president and CEO of the Illinois Bankers Association, had some interesting comments about credit unions and taxation.
Koch noted that the behavior of large credit unions has become more brazen with the acquisition of community banks and purchasing the naming rights to sports and entertainment venues.
She commented that these actions are getting the attention of lawmakers.
She believes that these actions by the credit union industry will ultimately force Congress and state legislatures to do the right thing and tax credit unions.
Read the article.
Koch noted that the behavior of large credit unions has become more brazen with the acquisition of community banks and purchasing the naming rights to sports and entertainment venues.
She commented that these actions are getting the attention of lawmakers.
She believes that these actions by the credit union industry will ultimately force Congress and state legislatures to do the right thing and tax credit unions.
Read the article.
Monday, February 10, 2020
Wings Financial CU to Acquire Minnesota Community Bank
Wings Financial Credit Union (Apple Valley, MN) and Neighborhood National Bank (Mora, MN) announced on February 7 that the two organizations have reached an agreement for Wings Financial to acquire the bank.
The transaction, which requires approval by state and federal regulators, is expected to close during the third quarter.
Wings Financial Credit Union is the largest credit union in Minnesota with over $5.6 billion in assets.
Neighborhood National Bank has more than $216 million in assets and six branches, which are located in Mora (2 offices), North Branch, Aitkin, Brainerd and Alexandria, Minnesota.
The price tag of the deal was not disclosed.
Read more.
The transaction, which requires approval by state and federal regulators, is expected to close during the third quarter.
Wings Financial Credit Union is the largest credit union in Minnesota with over $5.6 billion in assets.
Neighborhood National Bank has more than $216 million in assets and six branches, which are located in Mora (2 offices), North Branch, Aitkin, Brainerd and Alexandria, Minnesota.
The price tag of the deal was not disclosed.
Read more.
Wednesday, February 5, 2020
NCUA's Combination Transaction with a Non-Credit Union Proposal
The National Credit Union Administration (NCUA) on January 30 published in the Federal Register a proposed rule regarding a credit union's combination transaction with a non-credit union, including a bank.
The proposed rule provides clarity about the processes and requirements for a federally insured credit union with respect to this transaction.
The proposed rule requires NCUA's advance approval of all these transactions. In the case of federally insured state chartered credit unions, the advance approval of the state regulator is also required.
NCUA also identifies the factors that it will review regarding this transaction. Four factors involve safety and soundness issues, while the last two factors examine the impact of this proposed transaction on credit union members and potential members and whether the proposed transaction is in keeping with the credit union's mission.
The minimum amount of information to be part of an application includes the balance sheet and income statements for both institutions; a combined financial statement showing the transaction's potential impact on the credit union's net worth; information about the due diligence assessment of the proposed transaction; a delinquent loan summary; analysis of the adequacy of the allowance for loan and lease losses; and a list of the other institution's assets that would be impermissible by law.
The proposed rule requires a credit union's board of directors must vote to approve a proposed combination transaction before the credit union submits its application package. The board of directors must certify that management has explained how the transaction would affect the credit union's balance sheet and net worth and how the purchase prices was determined. Furthermore, board members must certify that they do not have a personal or pecuniary interest in the transaction.
The credit union must address how the potential members fall within the credit union's field of membership and how the credit union plans to convert potential members into actual members.
The comment period is for 60 days and must be received by March 30, 2020.
Read the proposed rule.
The proposed rule provides clarity about the processes and requirements for a federally insured credit union with respect to this transaction.
The proposed rule requires NCUA's advance approval of all these transactions. In the case of federally insured state chartered credit unions, the advance approval of the state regulator is also required.
NCUA also identifies the factors that it will review regarding this transaction. Four factors involve safety and soundness issues, while the last two factors examine the impact of this proposed transaction on credit union members and potential members and whether the proposed transaction is in keeping with the credit union's mission.
The minimum amount of information to be part of an application includes the balance sheet and income statements for both institutions; a combined financial statement showing the transaction's potential impact on the credit union's net worth; information about the due diligence assessment of the proposed transaction; a delinquent loan summary; analysis of the adequacy of the allowance for loan and lease losses; and a list of the other institution's assets that would be impermissible by law.
The proposed rule requires a credit union's board of directors must vote to approve a proposed combination transaction before the credit union submits its application package. The board of directors must certify that management has explained how the transaction would affect the credit union's balance sheet and net worth and how the purchase prices was determined. Furthermore, board members must certify that they do not have a personal or pecuniary interest in the transaction.
The credit union must address how the potential members fall within the credit union's field of membership and how the credit union plans to convert potential members into actual members.
The comment period is for 60 days and must be received by March 30, 2020.
Read the proposed rule.
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