Michigan Credit Union Plans Fourth Bank Acquisition

A Michigan credit union is planning to complete its fourth bank acquisition during the third quarter pending approvals by regulators and shareholders.

The board of directors for the $2.9 billion Advia Credit Union in Kalamazoo announced last week the signing of a definitive agreement to acquire the $267 million NorthSide Community Bank in Gurnee, Ill., which will expand the credit union’s market presence in that state.

The deal’s financial terms were not disclosed.

Founded in 1997, Northside Community Bank’s 31 employees operate four locations and manage $207 million in deposits, $197 million in loans and $50.9 million in capital, according to the bank’s third quarter FDIC Call Report. The bank posted income of $1.4 million at the end of the third quarter.

In addition to its main location in Gurnee, Northside Community has branches in Riverwoods, Mundelein and Niles.

If approved by regulators and shareholders, the acquisition will increase Advia’s assets to more than $3.1 billion and expand its branch network from 28 to 32 locations in Michigan, Illinois and Wisconsin.

The proposed deal is Advia’s second planned expansion into the Illinois market. In July 2019, the credit union finalized its purchase of the $150 million Golden Eagle Community Bank in Woodstock, Ill.

In a prepared statement, Northside Community Bank President/CEO Patti Clausen said Advia is well positioned to competitively meet the financial needs of both the bank’s commercial and consumer customers.

The credit union also has leveraged bank acquisitions to expand its market into southern Wisconsin. In 2016, Advia bought the $81 million Mid America Bank in Janesville, and in 2017, the financial cooperative purchased the $227 million Peoples Bank in Elkhorn.

If the Northside Community Bank deal is finalized, the credit union would operate seven branches in the Land of Lincoln state. Advia also runs six branches in Wisconsin and 19 branches in Michigan.

The credit union serves more than 203,000 members, according to its NCUA Call Report for the third quarter.

“At Advia, our mission is to provide financial advantages to those we serve. NorthSide has a very talented team, and we are excited to have them join ours – growing stronger together,” Advia President/CEO Jeff Fielder said in a prepared statement. “As an organization, we are dedicated to advancing lives in our communities and look forward to being an even stronger contributor within Illinois through outreach and volunteerism.”