SUPERIOR, Wis.—Superior Choice CU said it has agreed to acquire $78-million Dairyland State Bank.
Pending state and federal regulatory approval, the acquisition will create a combined financial institution with more than $480 million in assets.
The deal is expected to close in the third or fourth quarter of 2018. Dairyland State Bank was profitable last year, showing $432,000 in income through Sept. 30, according to FDIC data.
SCCU President/CEO Gary Elliott, who has been with the credit union since 2005, views the acquisition as an opportunity to expand SCCU’s footprint in northwestern Wisconsin.
“We are ecstatic to welcome Dairyland State Bank to our credit union,” said Elliott. “As a locally owned community bank, we know that the values of Dairyland State Bank are already closely aligned with the values that we champion as a member-owned credit union. While SCCU will grow in numbers and in branch locations, we will remain committed to serving our membership by offering low loan rates, high deposit rates, and member-focused services.”
Dairyland State Bank President Robert Hegeholz said SCCU’s community roots makes the credit union a “perfect fit” for Dairyland State Bank’s customers.
“Dairyland State Bank has taken immense pride in serving our local area,” Hegeholz said. “Superior Choice Credit Union is going to do an outstanding job in furthering the work we’ve done, while adding new products and services that Dairyland State Bank customers are going to really appreciate.”
The next step for the newly combined financial institution will be to fully integrate operations, products, services, policies, technology, and more, the CU stated. All Dairyland State Bank offices, located in Bruce, Exeland, Sheldon, Gilman, Holcombe, and Hayward in Wisconsin, will be converted to Superior Choice Credit Union branches in the coming months.
SCCU is represented by Michael Bell, attorney and counselor Royal-Oak, Mich.-based Howard & Howard. Bell has been part of 20 CU/bank deals, including three mergers of a bank into a credit union.
“This is the second transaction announced in 2018 and there will be more very soon,” said Bell. “Deal flow and activity in this area is at an all-time high. Specifically, I am seeing activity centered in the Southeast and the Midwest—and there will be a couple more announcements in the next 30 to 60 days.”