East Lansing, Mich.-based Michigan State University Federal Credit Union is acquiring its second Chicagoland bank in less than a week.
On Aug. 31, MSUFCU announced its pending acquisition of Algonquin State Bank, which is headquartered in the northwest Chicago suburbs. The deal came three days after MSUFCU announced its pending acquisition of McHenry Savings Bank, which is headquartered in Chicago’s northeast suburbs. The deals are expected to grow the credit union to approximately $9 billion by the end of next year as it expands to include 35 branches across Michigan and Illinois.
According to MSUFCU, the acquisition continues its “strategy to expand its presence in the Chicago market, diversify its assets and add additional talent and expertise.
“The combined resources of MSUFCU and Algonquin State Bank will produce excellent opportunities for both our members and their customers and the communities they live in, with an expanded array of resources and products and additional branch locations,” said MSUFCU President and CEO April Clobes.
“We know that MSUFCU will provide the resources and personalized service needed to meet the banking needs of our customers as well as the broader Chicago market.”
chair of the $145 million bank.
The deal is the fifth CU-bank purchase announced during the last week of August. Dothan, Ala.-based Five Star Credit Union has announced pending acquisitions of two banks, and Panama City, Fla-based Innovations Financial Credit Union disclosed that it will buy Panama City-based First National Bank of Northwest Florida.
Michigan State University Federal Credit Union received financial and legal advice from Minneapolis-based Piper Sandler & Co. and Washington, D.C.-based Luse Gorman, PC, respectively. Algonquin State Bank and its holding company First Algonquin Co. were advised financially and legally by Washington, D.C.-based Olsen Palmer LLC and Chicago-based Vedder Price P.C., respectively.
Following the acquisitions, the Independent Community Bankers of America again urged Congress to hold hearings on CU-bank purchases and requested a Government Accountability Office study on the evolution of the CU industry and perceived lack of supervision from the National Credit Union Administration.
As of last month, bank M&A numbers in 2023 were trailing the previous year. According to S&P Global, 51 bank M&As with a total value of $2.15 billion were announced through July of this year, compared to 98 for a total of $4 billion during the same period of 2022. Of the deals announced during the first seven months of the year, 26 banks were headquartered in the Midwest.