Royal Credit Union announced Aug. 12 that it has entered into a definitive agreement to acquire Minnesota-based Lake Area Bank in Lindstrom.
Under the terms of the agreement, Eau Claire, Wis.-based Royal CU will assume approximately $500 million in total assets in the transaction. Pending regulatory approval, the deal is expected to close in the first quarter of 2022.
“Royal is excited for the opportunity to bring our value proposition and commitment to making a positive impact in the lives we touch to expanded areas in Minnesota,” said Brandon Riechers, Royal CU president and CEO. “Lake Area Bank is a family-owned financial institution that has served the community for over 100 years. Royal’s values-driven and relationship-based approach to financial management made this acquisition a good fit for our credit union.”
Lake Area Bank was established in 1915 in Lindstrom. As of March 31, Lake Area Bank had 115 full-time equivalent employees and approximately $450 million in total assets. Lake Area Bank offices are in Forest Lake, Hugo, Lindstrom, Stillwater and White Bear Lake.
“Lake Area Bank is proud of our 100+ year history as a community bank serving customers and our local communities,” said Marc Campbell, Lake Area Bank president and CEO. “Royal Credit Union shares our values and commitment to service, and we look forward to providing continued excellent service for many years to come.”
In June, Royal announced plans to merge with Wisconsin-based Peoples Choice Credit Union in Medford. In 2016, Royal expanded in the Minnesota market through the acquisition Capital Bank in St. Paul and a branch in Apple Valley from Deerwood Bank, Baxter.
Winthrop & Weinstine, P.A., acted as legal advisor, and Oakridge Financial Services Group, Inc., acted as the financial advisor to Lake Area Bank. Honigman, LLP, acted as the legal advisor and McQueen Financial Advisors acted as financial advisor to Royal.