Minnesota’s largest credit union plans to buy savings and loan bank
Minnesota’s largest credit union on Monday announced the industry’s first bank acquisition plan for 2021.
The $ 6.4 billion Wings Financial Credit Union in Apple Valley, Minnesota has agreed to acquire $ 70.2 million from Brainerd Savings & Loan in Brainerd, Minnesota.
Financial terms of the deal were not disclosed.
This is the second bank purchase offered by Wings Financial in less than a year. In February 2020, the credit union announced the planned acquisition of Neighborhood National Bank for $ 260 million in Mora, Minn.
However, the deal was not concluded.
“Beyond closing the deal, we have no further comments on this transaction,” Wings Financial vice president of marketing Brent C. Anderson said on Tuesday.
The Banque Nationale de Quartier did not respond to CU time‘request for comment.
This planned deal, which was originally slated for completion in the third quarter of last year, reportedly included the purchase of the Neighborhood National Bank’s six branches, two in Mora and one each in Aitkin, North Branch, Brainerd and Alexandria, which are located all over central Minnesota, north of Minneapolis.
Brainerd S&L, which was founded in 1922, currently employs 12 people who operate a branch serving its 4,500 members.
At the end of the third quarter, the bank recorded total deposits of $ 56.2 million, nearly $ 5 million in principal, and reported net income of $ 104,000, according to its financial statements filed with the FDIC. .
The transaction, which requires approval from state and federal regulators, is expected to close by May 31. At that time, the bank branch will remain open under the brand of the credit union. Brainerd S&L members will become Wings Financial members.
When the acquisition is complete, it will increase the credit union’s total branch presence in Minnesota to 25 branches.
“We explored opportunities to expand our services in central Minnesota and this transaction was a great solution for Brainerd Savings & Loan and Wings,” said Frank Weidner, president / CEO of Wings Financial, in a statement.
In 2018, Wings Financial completed the acquisition of three branches of Klein Bank, which added approximately 4,000 members from the northwest suburbs of Minneapolis, Coon Rapids, Otsego and Plymouth.
Wings Financial currently has 301,517 members.