PARCHMENT, Mich.—The $1.2-billion Advia CU here has announced plans to acquire Mid America Bank in Janesville, Wis.
The acquisition is expected to be completed this year in the second or third quarter. Mid America, with $84 million in assets, has branches in Wisconsin in Williams Bay, Waukesha, and Madison. The purchase price was not disclosed.
“We are excited and pleased to have the opportunity to welcome the customers of Mid America Bank as members of Advia Credit Union,” said Cheryl DeBoer, Advia's president and CEO. “At Advia we are committed to providing financial services that are designed to promote financial health for a lifetime to all of our members. We are equally dedicated to advancing lives in our communities and look forward to being an integral part of the south-central Wisconsin community through community outreach, volunteerism and financial literacy education.”
The 121,000-member Advia currently has 24 branches in Michigan, Illinois and Wisconsin. The move, Advia stated, positions the credit union well within its service area. When the deal is closed, Advia will have approximately $1.3 billion in assets, 400 employees, and 28 branches.
The merger still needs approval of the NCUA and FDIC and CU regulators in Michigan and Wisconsin.
“Advia is financially strong and well positioned for continued growth in our multi-state regions and this acquisition will allow us to compete with even greater success in the financial services industry,” added DeBoer.
Mike Jones, president and CEO of Mid America Bank, said, "We are extremely pleased with the proposed transaction, and we believe Mid America's customers, employees, communities and shareholders will all benefit. Advia has the size, resources, and experience necessary to competitively meet the financial needs of our customers and communities now and in the foreseeable future."
Advia’s financial position is strong, having made $4 million in 2014 and $10.9 million last year. The CU’s capital stands at 12.48%.
According to FDIC data, Mid America last year lost $204,000 by the close of September, and had lost $189,000 by the same time a year earlier. Assets during that period fell from $93.5 million to $88.1 million.
“The past few credit union/bank transactions have been located in the Southeast, a hotbed of activity for these type of deals, it’s nice to expand the geography into the Midwest” said Michael Bell, attorney and counselor with Royal-Oak, Mich.-based Howard & Howard, who is representing Advia.
Bell has been part of eight CU/bank deals, including one merger of a bank into a credit union. “The Midwest is also ripe for these deals as it contains a multitude of fine, small, community banking institutions. I predict an uptick in this type of transaction in the Midwest.”
If Advia’s deal is finalized, it will be the eighth time a credit union has purchased a bank since 2011, when Michigan's $1.6-billion United FCU pioneered such purchases by acquiring $81-million Griffith Savings Bank in Indiana.
Last August, $607-million Avadian Credit Union in Birmingham, Ala., signed an agreement to purchase the $127-million American Bank of Huntsville, located in Huntsville, Ala. Last May, the $1.1-billion Achieva CU, Dunedin, Fla., signed an agreement to acquire the $165-million Calusa Bank based in Punta Gorda, Fla. The deal marked what is believed to be the first time in history a credit union merged with a bank, rather than do a purchase-and-assumption.
In addition to the United, Advia, Achieva and Avadian agreements, the other CU/bank deals to date: The $318-million Alabama-based Five Star CU purchased the $23-million Flint River National Bank in Camilla, Ga., and closed a deal with $47-million Farmers State Bank in in
Lumpkin, Ga.; the $1.2-billion Municipal Employees CU of Baltimore purchased local $61-million Advance Bank; Wisconsin's $2.1-billion Landmark CU acquired $190-million Hartford Savings Bank; and Massachusetts' $429-million GFA FCU bought New Hampshire's $83-million Monadnock Savings Bank.