Minnesota's Largest Credit Union Plans Wisconsin Bank Buy

The $8 billion Wings Financial Credit Union in Apple Valley, Minn., said Wednesday it plans to acquire the $318 million Settlers bank in Windsor, Wis.

Financial terms were not disclosed.

“We’ve been exploring opportunities to expand into Wisconsin and this transaction was a great fit for both Settlers bank and Wings,” Wings Financial President/CEO Frank Weidner said in a prepared statement. “This opportunity will jumpstart our market presence in Wisconsin.”

If the proposed transaction is approved by state and federal regulators, Settlers bank and its three branches will be re-branded as Settlers Best Credit Union, a division of Wings Financial Credit Union. The deal is expected to close in mid-2023.

During the Great Recession of 2007, bank veterans David Fink and Tom Spitz founded the financial institution and managed to grow it to a loan portfolio of more than $309 million, according to its second quarter financial report filed with the FDIC. While the state-chartered bank specializes in commercial and industrial loans, it has a sizable mortgage and residential construction loan portfolio, in addition to providing treasury and private banking services.

At the end of the second quarter, the bank posted a net income of $1.8 million and managed $233 million in deposits and $39.8 million in equity, according to financial reports.

“We are excited that the approach to the transaction will keep the systems and team of Settlers bank intact to allow us to continue to serve our markets without disruption,” Settlers bank President Fink said in a prepared statement.

Settlers bank CEO Spitz noted the bank was opened 15 years ago to be accessible and to build relationships through collaboration.

“Wings shares these values and our partnership will allow us to build on our already strong market momentum,” he said.

Settlers bank’s 41 employees operate branches in Appleton, Madison and Windsor.

In September 2021, Wings Financial closed its deal to buy the $70.2 million Brainerd Savings and Loan in Brainerd, Minn. In January 2021, its proposed agreement to buy the $296 million Neighborhood National Bank in Mora, Minn., was called off.

The Wings Financial-Settlers bank proposed deal is the 11th credit union bank buy agreement this year.

Thirteen credit union-bank buy deals were announced in 2021. However, last August, the $11.2 billion GreenState Credit Union, pulled out of its proposed acquisition of the $365 million Premier Bank after a state judge affirmed a decision of the Nebraska Department of Banking and Finance to deny an application for the Omaha-based bank to be acquired by the North Liberty, Iowa-based credit union. In addition, the Tennessee Department of Financial Institutions is appealing a lower court’s May 27 ruling that allowed the $1.2 billion Orion Federal Credit Union in Memphis to move forward with its proposed purchase of the $818 million Financial Federal Bank, also based in Memphis.