Verve Credit Union Buys Chicago Bank

Verve Credit Union in Oshkosh, Wis., will pay approximately $43 million in cash to buy South Central Bank, the Chicago, Ill.-based financial institution said Tuesday.

If approved by regulators, the deal would increase Verve’s current assets from $961 million to more than $1.2 billion, expand its marketplace with five branches in the near south and near west sides of the Windy City, and open up access to more than 1,000 small business customers the community bank said it serves.

The acquisition will increase Verve’s branch network from 16 to 21 and boost its membership from 59,473 to nearly 66,000 in 24 counties.

South Central Bank posted $295 million in assets, $248 million in deposits, $352,000 in net income and an ROA of 0.48% at the end of the first quarter, according to the FDIC. The bank manages more than $25 million in capital.

Established in 1966, South Central started as a commercial bank and now operates five branches that the bank boasts are located in the fastest growing residential, commercial and industrial areas of Chicago.

Although the bank said many of its long-term business clients and others have relocated, they have maintained banking with South Central. The bank said it was one of the first Small Business Administration preferred lenders in Northern Illinois. South Central offers SBA 7A small business loans with delegated approved authority,

“Not only will this acquisition allow us to grow in a new thriving market, but financially it makes sense for the entire membership of Verve,” Kevin J. Ralofsky, president/CEO of Verve, said in a prepared statement. “South Central Bank is an extremely well-run bank and we look forward to expanding our field of membership and serving the Chicago market.”

The acquisition of South Central Bank is expected to be finalized in the fourth quarter, pending regulatory approval.

This marks the eighth credit union bank purchase deal so far this year.