East Lansing-based Michigan State University Federal Credit Union is growing its presence in the Chicago region by acquiring northeast Illinois-based McHenry Savings Bank.
The combined institution is expected to have approximately $8.2 billion in assets and $6.3 billion in loans with 31 branches in Michigan and Illinois. The deal is the $7.6 billion CU’s first of a bank, and is expected to be completed late in the first quarter of next year. Following the transaction, McHenry Bancorp will liquidate and distribute remaining assets to its shareholders.
“This transaction provides an excellent opportunity to further expand and complement our services in McHenry County and the surrounding Chicagoland area,” said MSUFCU President and CEO April Clobes. “MSUFCU has five branch locations in downtown Chicago and this adds exponentially to our growing market. We look forward to the combined synergies our two organizations will achieve in our local communities while providing McHenry Savings Bank’s clients with an expanded array of resources and products.”
McHenry Bancorp shareholders are expected to receive $39 to $41 in cash for each share of common stock. Donald Wilson, president and CEO of the $600 million McHenry Savings Bank, said the acquisition will allow his company to join “a successful organization that is like-minded in its philosophy of offering highly personalized financial services and that has the financial capabilities to support further expansion.”
Minneapolis-based Piper Sandler & Co. and Washington, D.C.-based Luse Gorman, PC provided financial and legal advice, respectively, to MSUFCU. Philadelphia-based Janney Montgomery Scott LLC and Milwaukee-based Godfrey & Khan, S.C. provided financial and legal advice, respectively, to McHenry Bancorp.