An Illinois-based credit union is purchasing a community bank within the state. According to an Aug. 20 announcement, Edwardsville-based Scott Credit Union will assume substantially all Tempo Bank assets and liabilities in an all-cash transaction.
The acquisition includes Tempo Bank’s main office in Trenton and its branch in Breese, increasing Scott Credit Union’s footprint the St. Louis area. As of June 30, Tempo Bank had $92.9 million in total assets, $76.4 million in total deposits and $10.5 million in total equity.
The boards of directors for Tempo Bank, its holding company, Sugar Creek Financial Corp., and Scott Credit Union have already unanimously approved the deal. Closing is expected in 2Q 2022, subject to the approval of Sugar Creek stockholders and regulatory approval.
Sugar Creek’s stockholders are estimated to receive between $14.50 and $16.50 in cash in the dissolution in exchange for each share of Sugar Creek common stock owned. Sugar Creek has 790,701 shares of common stock outstanding.
“We are excited for the opportunity to partner with Tempo Bank and to improve access to our service in Clinton County,” said Frank Padak, president and chief executive officer of Scott Credit Union. “Tempo Bank is a well-managed bank, and we believe its robust mortgage lending portfolio will be beneficial to the credit union as we continue making strides for our goal of long-term growth.”
“Scott Credit Union’s values are rooted in our commitment to our local community,” he added. “With Scott Credit Union offering service through 22 branches, this transaction will be mutually beneficial for Tempo Bank’s customers and Scott Credit Union members alike. One of our goals is to provide close, convenient branch access for those living or working in our service area. In addition to our Lebanon location, which was added in 2020, the acquisition of Tempo Bank’s offices helps us make progress towards that goal, especially for residents of Clinton County.”
Robert J. Stroh, Jr., chair, CEO and CFO of Sugar Creek Financial Corp. and Tempo Bank, shared those positive sentiments. He will retire after more than 45 years of service with Tempo Bank following the consolidation. At that time, Scott Credit Union expects to offer him a consulting agreement following the consolidation for a period of time.
“We know our customers will benefit from all the additional resources that Scott Credit Union has to offer while knowing that their money is staying right here in the community,” Stroh, Jr., said.
Honigman LLP is serving as legal counsel to Scott Credit Union. Luse Gorman, P.C., is serving as legal counsel to Sugar Creek and Tempo Bank. Keefe, Bruyette & Woods, Inc., is serving as financial advisor to Sugar Creek and Tempo Bank.