Minnesota’s Largest Credit Union Plans to Buy Bank
Wings Financial CU expects to close the purchase of Neighborhood National Bank by the third quarter.
The $5.6 billion Wings Financial Credit Union reached an agreement to buy the $224 million Neighborhood National Bank, Minnesota’s largest financial cooperative said in a prepared statement Friday.
Financial terms were not disclosed of what is believed to be this year’s first publicly announced credit union bank purchase deal.
The acquisition includes the bank’s six branches, two in Mora, and one each in Aitkin, North Branch, Brainerd and Alexandria that are located throughout central Minnesota, north of Minneapolis.
The acquisition, if approved by state and federal regulators, will expand Wings Financial’s total branch presence in Minnesota to 30 locations. The bank’s 7,400 customers will increase the credit union’s total membership from 287,624 to more than 295,000.
“We have been exploring opportunities for expanding our services in central Minnesota, and this transaction was a great fit for both Neighborhood National Bank and Wings,” Wings Financial President/CEO Frank Weidner said in the prepared statement.
At the end of last year’s third quarter, Neighborhood National Bank, which specializes in commercial lending, recorded total deposits of $193 million, net income of $2.2 million and capital of $26.6 million, according to financials posted by the FDIC. The bank’s ROA was 1.34%.
The transaction is expected to close during the third quarter.
The bank’s 54 employees are expected to continue working at Wings Financial, and Doyle Jelsing, Neighborhood National Bank’s president/CEO, is expected to retire.
In July 2018, Wings Financial paid an undisclosed amount for three KleinBank branches and the accounts associated with them. The deal added about 4,000 members in Minneapolis’ northwest suburbs of Coon Rapids, Otsego and Plymouth.