MidCountry Financial Corp., a savings and loan holding company based in Macon, Ga., announced June 13 it entered into a definitive agreement to sell its Minnesota-based subsidiary, MidCountry Bank, to MidCountry Acquisition Corp., a corporation organized by Minnesota investors to acquire the bank. MidCountry Bank is a federally chartered savings association in Minneapolis.
MidCountry Bank, with $775 million of assets as of March 31, 2018, serves the Minneapolis region through a network of 15 full-service branches. It offers a range of products and services through various subsidiaries and divisions including, MidCountry Investments, MidCountry Insurance, and MidCountry Mortgage. MidCountry Bank also operates a consumer banking division under the name Pioneer Services, providing active-duty military, career-retired military, and veterans of the U.S. Armed Forces with access to personal installment loans and free financial education resources online and through a network of seven loan production offices around the country.
Following the close of the transaction, MidCountry Bank will retain its name and management team (including current president and CEO, Steve Meads) along with key customer-facing systems, branches and operations. Pioneer Services will also continue serving military customers.
“We are extremely excited about the potential this new Minnesota-based ownership group will provide… We will now have a committed source of local capital and flexibility to pursue investments that further enhance our customer experience, with added local relationships also allowing us to grow both our market visibility and awareness,” said Meads, according to a press release published on the bank’s website.
The acquisition of MidCountry Bank is subject to regulatory approval and other customary closing conditions, and is expected to close during the fourth calendar quarter of 2018.
Alston & Bird LLP provided legal counsel, and RBC Capital Markets served as exclusive financial advisor to MCFC. Ballard Spahr LLP provided legal services to MidCountry Acquisition Corp.