Illinois community bank merges into large credit union

An Illinois community bank recently merged into one of the largest credit unions in the United States. 

Oak Brook, Ill.-based Oxford Bank officially became part of GreenState Credit Union on Jan. 1. The North Liberty, Iowa-based credit union now has 33 locations in Iowa and Illinois, more than 320,000 members — more than 13,000 in Illinois alone — and more than $7.8 billion in assets. “We plan to serve Oxford customers and GreenState members with a combination of branch locations, a full-service call center, and a host of free digital services,” the credit union states. 

The $743.2 million Oxford Bank began assessing its strategic options in early 2020. Leaders contacted GreenState, “and it was determined to be a good fit for both Oxford and GreenState,” according to the bank.

 Bank employees have become GreenState employees, and all former Oxford branches  — Addison, Naperville, Plainfield and Westmont, Ill.  — are remaining open as GreenState locations. Oxford Bank’s president and CEO, Bruce Glawe, will be the market president of GreenState’s Chicago-area operations.

The closing of the merger comes as two other proposals involving GreenState hit roadblocks with regulators: The Iowa Division of Banking previously objected to the credit union’s acquisition of First American Bank in Fort Dodge before ultimately allowing the deal to proceed in 2020. Just last week, the Nebraska Department of Banking and Finance rejected Omaha-based Premier Bank’s application to merge into GreenState. Hearing Officer Jim Titus wrote in a 15-page ruling that the $395 million Premier Bank lacked the legal standing to sell its assets to the credit union. Also, Titus wrote that GreenState, as a credit union organized under Iowa laws, is not qualified to purchase Premier Bank under Nebraska statutes.

GreenState, however, continues to grow: It is scheduled to acquire Midwest Community Bank, Freeport, Ill., in the second quarter of this year, further expanding its Illinois presence with three branches — Freeport, Woodstock and Rockford — and seven LPOs.