Iowa’s Second Largest Credit Union Expects to Finalize Bank Buy Next Year
Veridian’s proposed purchase of American Investors Bank and Mortgage marks its first expansion into the Minnesota market.
The $6.7 billion Veridian Credit Union in Waterloo, Iowa said Tuesday it plans to acquire the $111 million American Investors Bank and Mortgage in Eden Prairie, Minn.
Financial terms were not disclosed.
A purchase agreement, unanimously approved by both boards of directors, is pending regulatory approvals, meaning the deal is expected to be finalized by July 2023.
Chartered in 2004, AIBM is a locally owned, independent community bank that specializes in mortgage lending. In addition to Eden Prairie, the bank also serves the surrounding Twin Cities metro communities.
According to AIBM’s third quarter Call Report, it managed $76.4 million in deposits and $9.9 million in equity capital, and posted a net income of $887,000. The bank recorded no charge-offs or recoveries, its third quarter Call Report showed.
Veridian, Iowa’s second largest credit union by assets, said it will retain the 14 AIBM employees and the bank’s sole location, which will mark the credit union’s first expansion into the Minnesota market. Veridian’s 985 employees currently operate 30 branches across Iowa and eastern Nebraska, serving more than 308,000 members.
“American Investors Bank and Mortgage clients will continue to experience the personalized service they are accustomed to and will benefit from additional services offered by Veridian, along with the ability to meet the needs of an expanded base of clients,” AIBM CEO David Coauette said in a prepared statement. After 21 years of service, he plans to retire after the transaction’s completion.
“We’re excited to welcome the employees and clients of AIBM to Veridian and eager to become a part of the Eden Prairie community,” Veridian President/CEO Renee Christoffer said. “Combining our resources will create greater access and opportunity for AIBM clients and Veridian members alike. The future we share is bright.”
This is Veridian’s first bank purchase and the industry’s 12th credit union bank acquisition agreement this year. Last year, there were 13 credit union-bank buy deals announced.