CCF Bank, a subsidiary of Citizens Community Bancorp, Inc., is selling its Rochester Hills, Mich., branch to Lake Michigan Credit Union, Grand Rapids.
The purchase and assumption agreement includes approximately $35 million in deposits and approximately $300,000 in fixed assets. LMCU has agreed to pay a 7 percent deposit premium, or approximately $2.45 million. All loans associated with this branch will remain with CCF Bank following close of the deal, expected in second quarter 2019. In the short term, the Altoona, Wis.-based CCF Bank plans to use FHLB borrowings to fund the sale of the deposits.
“The sale of our Michigan location will realign our branch network to northwest Wisconsin and southern Minnesota and reflects a good value to shareholders from the branch sale,” said Steve Bianchi, president of the $975 million CCF Bank and its holding company Citizens Community Bancorp, Inc., Eau Claire, Wis. “Our employees and customers will benefit from LMCU’s strong reputation as an outstanding place to work and bank. We are pleased with the outcome for all of our constituencies.”
Citizens Community was slated to pass $1 billion in assets with its October acquisition of United Bank, Osseo, Wis.
The $6 billion Lake Michigan CU has branches in Michigan and Florida and is one of a string of credit unions making bank acquisitions, either in whole by branch deals.
Joseph Kinning of Briggs and Morgan serves as Citizens Community Bancorp’s legal advisor. FIG Partners serves as Citizens Community Bancorp’s financial advisor. Michael Bell of Howard & Howard Attorneys PLLC serves as Lake Michigan Credit Union’s legal advisor.