The $1.3 billion Advia Credit Union of Parchment, Mich., is making its second Wisconsin bank purchase within six months.
Advia CU announced earlier this week that it signed a definitive agreement to buy the $232 million Peoples Bank in Elkhorn, Wis.
Financial terms of the deal were not disclosed.
On Aug. 1, the credit union completed its acquisition of the $82 million Mid America Bank in Janesville, Wis. Advia gained four Mid America Bank branches in south central Wisconsin and more than 3,000 of the former bank’s customers. The credit union’s field of membership also expanded by eight counties.
The Peoples Bank purchase would double Advia’s branch network in Wisconsin and expand it in the southeastern part of the state. The acquisition would also more than double the potential number of new members in the Badger State. Peoples Bank serves an estimated 7,800 customers.
Established in 2001, Peoples Bank posted total deposits of $196 million and a year-to-date net income of $1.4 million at the end of the third quarter, according to the FDIC. The bank’s ROA was 0.85% and ROE was 8.04%.
During 2000, Peoples Bank organizers, all area business professionals with strong ties to the local community, raised more than $7 million in capital and opened an office and branch in Elkhorn during the first quarter of 2001. Later, the bank opened a second location in Elkhorn and two additional branches in Silver Lake and Burlington.
In addition to is consumer clients, Peoples Bank maintains relationships with commercial, agricultural, municipal and on-profit customers, Tom Oehler, president/CEO of Peoples Bank, said.
Peoples Bank employs more than 60 staff members.
Advia expects to finalize the bank acquisition by the third quarter if it is approved by state and federal regulators and bank shareholders.
The credit union also operates one branch in Illinois and 18 branches throughout eastern and southeastern Michigan.
This is the first publicly announced credit union purchase of a bank in 2017.
In addition to Advia’s acquisition of Mid America Bank, there were three acquisitions announced last year.
In November, the $946 million IBM Southeast Employees Credit Union in Delray Beach, Fla., filed applications with state and federal regulators, including the NCUA, to secure approvals to buy the $109 million Mackinac Savings Bank in Boynton Beach.
In addition, the $588 million Family Security Credit Union in Decatur, Ala., announced plans to buy the $24.4 million Bank of Pine Hill in Pine Hill, Ala., in August. And in the same month, the $1.9 billion Royal Credit Union in Eau Claire, Wis., completed its purchase of the $35 million Capital Bank in St. Paul, Minn.
