LA CROSSE, Wis.—Marine Credit Union has entered into an agreement to buy five retail branch offices from $2.6-billion Bank Mutual Corporation, based in Milwaukee.
The agreement includes the $690-million CU buying $52.6 million in deposits and $13.2 million in loans associated with the locations. Exact terms and price of the transaction were not disclosed.
The pending sale consists of one office in Kenosha, two in Racine, and two in Sheboygan, Wis., and is expected to close in the third quarter, subject to state and federal regulator approvals. After the sale, Bank Mutual will have 57 offices in Wisconsin and one in Minnesota.
“We are pleased to partner with Bank Mutual, a bank that shares our values, to continue providing excellent service and competitive products to customers in Kenosha, Racine and Sheboygan. We look forward to welcoming these Bank Mutual customers as members of Marine Credit Union and to expanding our impact in these communities,” said Shawn Hanson, Marine Credit Union CEO. “As a member-owned credit union, we strive to make life better for those around us: our members, our employees and our communities. This acquisition furthers our growth strategy and aligns with our mission.”
“Bank Mutual and Marine Credit Union share a passion for providing consumers with resources and advice to make confident decisions and plans for their financial future, while also supporting our local communities with our time and talents,” said David Baumgarten, president and CEO of Bank Mutual. “We are pleased to have found a partner in Marine Credit Union that will continue to provide the Kenosha, Racine and Sheboygan communities with this level of commitment and support.”
Baumgarten noted that consumer banking habits have changed over time and that the bank regularly reviews branch distribution to ensure the FI is operating as efficiently as possible.
“Being efficient allows us to provide our customers with higher levels of service and access to financial tools and technology that customers expect in today’s rapidly changing world,” said. “The sale of these branches will provide us an opportunity to invest in further enhancements to our customer experience.”
Michael Bell, attorney and counselor with Royal-Oak, Mich.-based Howard & Howard, who is representing Marine CU, sees a “trend” developing among regional and community banks.
“More banks seem to be in rightsizing mode. These banks are making strategic decisions to exit certain markets which presents opportunities for buyers to enter or bolter presence in those markets,” said Bell, who has now been part of 13 CU/bank deals, including one merger of a bank into a credit union. “This presents an opportunity for credit union buyers to obtain multiple branches including loans and deposits. The transactions can be very advantageous to the bottom line.”