FERNDALE, Mich.–Credit Union One here has acquired the $220-million Hantz Bank, which has six branches. Terms of the transaction have not been announced.
Donna Reid, senior vice president and chief marketing officer at the $1.2-billion Credit Union One, told Crain’s Detroit Business that the acquisition is subject to regulatory approval and expected to close later this year
According to the publication, the bank’s parent company, Hantz Group and Credit Union One have had a relationship for several years involving shared financial services with clients. Hantz Group provides members of the credit union with financial planning and investment and insurance services, while the credit union provides auto financing assistance to clients of the Hantz Group, Reid told Crain’s Detroit Business.
"After years of collaboration this merger clears a path for our shared vision of a seamless experience for our clients and advisors," John Hantz, chairman of Hantz Bank, said in a statement.
Hantz said there are further plans for the Hantz Group and Credit Union One to expand their relationship and operate some branches under the name Hantz Credit Union, according to Crain’s. How that relationship would work was not described in further detail.
"This is the second merger transaction involving a Michigan CU and the first involving a Michigan-based bank as seller," said Michael Bell, attorney and counselor Royal-Oak, Mich.-based Howard & Howard, who is representing Credit Union One. "This is the fifth whole bank deal of 2018 and more announcements will be occurring in the near future. The pace in this space is the highest I have experienced in the past 10 years.”
Bell has been part of 23 CU/bank deals, including three mergers of a bank into a credit union.
Credit Union One has more than 130,000 members.