South Dakota credit union to acquire branch of Minnesota bank

Sioux Falls, S.D.-based Levo Credit Union later this year will acquire a Sioux City, Iowa, branch later this year from Spicer, Minn.-based Heritage Bank, NA. 

Levo Credit Union recently announced its plan to expand to 29 counties in four states along the Interstate 29 corridor from its current service area of four counties around Sioux Falls. The branch will add approximately $33 millions of loans and $33 million of deposits to Levo’s balance sheet. Levo plans to offer employment to current branch employees. 

The Sioux City branch, originally part of United Federal Savings Bank, was acquired 30 years ago by Heritage Bank of Holstein, Iowa. The $590 million Heritage once operated 10 branches in northwestern Iowa that it has since divested. The bank still has locations in west central Minnesota and Sioux Falls.     

“We are confident this move will be good for our Sioux City employees and customers,” said Heritage Bank Chair and CEO Thomas Geiger. “We’ll be leaving them in good hands. Levo is committing resources to grow and serve the Siouxland community. This is also a good transition for us, allowing Heritage to redeploy our resources for continued growth of our digital banking and mortgage lending brands.” 

Detroit-based Honigman LLP was legal counsel to Levo while Memphis-based Mercer Capital was financial adviser to the firm. Washington, DC-based Olsen Palmer LLC was financial adviser to Heritage, while Philadelphia-based Ballard Spahr LLP was legal counsel.