Sioux Falls, S.D.-based Levo Credit Union plans to acquire a bank branch in Sioux City, Iowa, from Spicer, Minn.-based Heritage Bank, N.A.
The transaction is expected to close in the fourth quarter of this year. Levo Credit Union President and CEO Fran Sommerfeld said the acquisition aligns with the CU’s growth plan, and will allow it to better serve its members. Levo plans to offer employment to current branch staff, according to a press release, and will also assume some loans and deposits.
Heritage Chair and CEO Thomas Geiger said the deal will allow his bank to redeploy resources to continue growing its digital banking and mortgage lending brands. An employee-owned bank, Heritage operates two digital banking brands, including Physician Bank, which provides mortgage and banking services to medical doctors; and Acres Bank, which finances farmland nationwide.
The $470 million Levo Credit Union recently announced its growth from four counties around Sioux Falls to 29 counties along the Interstate 29 corridor in South Dakota, Iowa, North Dakota and Minnesota. The branch buy will add $33 million of loans and $33 millions of deposits to the credit union.
Levo received legal counsel from Honigman LLP, while Mercer Capital was the financial advisor for the CU. Heritage Bank was advised financially by Olson Palmer LLC, while Ballard Spahr LLP was legal counsel for the $590 million bank.