Waite Park, Minn.-based Deerwood Bank completed the sale of its Inver Grove, Minn., branch to Royal Credit Union.
The branch had approximately $17 million in deposits at the time of the announcement, according to a press release. Member accounts were converted May 6-8, and the office opened as Royal Credit Union on May 9.
Royal Credit Union President/CEO Brandon Riechers said the acquisition allowed his organization to “bring our values and community involvement to an area of Minnesota that is a logical connection” to several other metro-area offices.
The approximately $1 billion Deerwood Bank will continue to operate its branches in 12 Minnesota communities. The approximately $3.8 billion, Eau Claire, Wis.-based Royal Credit Union now has four branches in Minnesota and 21 in Wisconsin.
Last August, Royal Credit Union announced it had entered into a definitive agreement to buy Minnesota-based Lake Area Bank in Lindstrom. The Minnesota Department of Commerce rejected the plan earlier this year, saying that “a state-chartered bank is not authorized to transfer its assets and liabilities to a credit union for the purpose of consolidating or merging out of existence.” At the time, Riechers said the original transaction had been restructured, and the two organizations were under a binding purchase agreement. Royal Credit Union has not released more information on the proposed merger.