CUs in Michigan & Alabama Announce More Bank Acquisition Deals
MSUFCU continues to expand in Chicagoland and Five Star CU keeps growing its market presence in Georgia.
In the span of just four days, officials with credit unions in Michigan and Alabama have announced their second bank acquisition deals.
On Thursday, the $7.7 billion Michigan State University Federal Credit Union (MSUFCU) in East Lansing signed a definitive purchase and assumption agreement with the $144 million Algonquin State Bank in Algonquin, Ill. On the same day, the $773 million Five Star Credit Union in Dothan, Ala., also said it inked an agreement to acquire the $178 million Wilcox County State Bank in Abbeville, Ga. Financial terms of these purchase agreements were not disclosed.
Just days earlier, on Aug. 28, MSUFCU said it plans to buy the $322 million McHenry Savings Bank in McHenry, Ill., and Five Star said it plans to purchase the $212 million OneSouth Bank in Macon, Ga.
The proposed acquisition of Algonquin State Bank continues MSUFCU’s strategy to expand its presence in the Chicago market. In July, MSUFCU said it plans to open five branches in Chicago next year — its first offices outside its home state.
“The Chicagoland area has the greatest concentration of MSU alumni outside of Michigan, including 2,500 who are MSUFCU members,” MSUFCU President/CEO April Clobes said in a prepared statement. “In order to best fulfill the credit union’s mission, our aim has always been to be where our members are, so this branch expansion into Chicago will help further those efforts.”
Founded in 1902, Algonquin State Bank’s 25 employees operate three branches that serve about 500 customers.
The bank manages $81.6 million in loans, $131 million in deposits and $9.1 million in equity capital, according second quarter financial reports filed with the FDIC.
MSUFCU said the transaction is expected to close during the late first quarter of 2024 pending required regulatory approvals and shareholders of First Algonquin Company.
The proposed Five Star purchase of Wilcox County State Bank would expand the credit union’s market presence in Georgia, which currently lists 11 branches in the Peach State, according to the credit union’s website. The two banks Five Star plans to buy operate eight locations, which would increase its branch operations to 19 in Georgia. On its website, Five Star lists eight locations in Alabama and its corporate offices.
Wilcox County State Bank was founded in 1952. Its 32 employees operate four branches, in Abbeville, Rochelle, Milan and Ocilla, serving approximately 5,400 customers.
The bank manages $122 million in loans, deposits of more than $144 million and equity capital of $16.2 million, according to second quarter financial reports filed with the FDIC.
The transaction is expected to be completed by the second quarter of 2024 pending regulatory and shareholder approvals.
“Five Star Credit Union is member-focused and our purpose is to brighten the financial future of the communities we serve. Wilcox County State Bank has similar values for its customers,” Five Star CEO Bob Steensma said in a prepared statement. “This is a great opportunity to put our combined experiences together to show how a community-focused financial institution can give a great banking experience. We’re excited to welcome Wilcox County State Bank’s customers and staff to the Five Star family.”
The MSUFCU and Five Star bank buy deals represent the eighth and ninth agreements announced this year. In 2022, there were 16 credit union bank acquisition deals.