Some of KleinBank customers are about to shift to being credit union members. Wings Financial Credit Union, Apple Valley, Minn., agreed to purchase three of the Chaska, Minn.-based bank’s branches Wednesday. When the acquisition is completed, sometime in the second quarter, customers at the affected branches, located in Coon Rapids, Ostego and Plymouth, will automatically become Wings members.
All three KleinBank branches being sold are within 35 miles of Minneapolis.
“We have been exploring opportunities for expanding our services in the northwest metro,” said Frank Weidner, Wings Financial CU president and CEO. “… We’re eager to welcome our new members. They will benefit from our services, our great rates and low fees.
“Upon closure of this deal, the thousands of Wings members living in these areas will gain additional convenience through these new branch locations.”
Unlike a bank-to-bank merger or acquisition, this deal will need approval from multiple regulatory agencies, including the NCUA, the FDIC and the Minnesota Department of Commerce. The $1.97 billion KleinBank will keep its 18 other locations.
“As we focus our network on our growth markets, it was vitally important to us that we find a buyer for these branches who would provide a comparable level of service and the full range of financial products our customers need,” KleinBank President and CEO Doug Hile said in a statement. “We found what we were looking for in Wings.
“…We intend to reinvest the proceeds of this sale back into our organization to fund future growth and strategic initiatives.”
Upon regulatory approval, the $4.5 billion Wings Financial will have 20 branches in the Minneapolis-St. Paul area; it also operates branches in Michigan, Florida, Georgia and Washington. Originally a credit union serving the aviation industry, membership at Wings is now open to anyone who lives or works in the 13-counties that comprise the Minneapolis-St. Paul metropolitan area.