EAU CLAIRE, Wis.—The $1.8-billion Royal Credit Union is acquiring the Apple Valley, Minn., office of Deerwood Bank as well as its customers.
According to a statement from the credit union, the acquisition will provide greater access for current members and extend the CU’s reach.
The office, located at 14295 Cedar Avenue in Apple Valley, is Deerwood Bank’s only facility included in the agreement.
Under the terms of the agreement, Royal will assume deposits and purchase assets of the Apple Valley branch. Pending customary closing conditions, including obtaining approval from NCUA, FDIC and the state regulator, the deal will be completed in the second half of 2016.
“We are pleased to announce the planned acquisition of Deerwood Bank’s Apple Valley office. We are excited to be expanding our office network to serve new and existing members in the Minneapolis-Saint Paul metropolitan area,” said Rudy Pereira, Royal Credit Union president and CEO, in a statement. “Deerwood Bank takes pride in its commitment to community and that made the acquisition a good fit for our credit union. Royal is a values-based company that puts its members first and supports the communities it serves.”
Deerwood bank has been in business since 1910, but just recently acquired its Apple Valley office. The office was added as part of a merger with American Bank of St. Paul in 2015. Deerwood Bank is privately owned and insured by the FDIC.
“Royal Credit Union shares our commitment to excellent customer service and community-minded banking. Our customers in the South Metro Markets will be taken care of,” said John Ohlin, CEO of Deerwood Bank. “Going forward, this transaction will further enable Deerwood Bank to focus on the St. Paul and Greater East Metro markets.”
Deerwood Bank will retain ownership of all of its other 11 bank locations in Minnesota.
Royal is also in the process of acquiring Capital Bank in Saint Paul, Minn.
Michael Bell, attorney and counselor with Royal-Oak, Mich.-based Howard & Howard, said that bank branch purchases extend CUs’ merger options. Bell, who is representing Royal in the Capital Bank buy and the Deerwood purchase, has been part of nine CU/bank deals, including one merger of a bank into a credit union. Bell sourced the Deerwood buy for Royal.