Levo Credit Union Plans to Acquire Heritage Bank Branch in Iowa

The $472 million Levo Credit Union in Sioux Falls, S.D., plans to buy a branch of the $577 million Heritage Bank of Spicer, Minn., by the fourth quarter if approved by regulators.

The deal’s financial terms were not disclosed.

The credit union’s proposed purchase of the bank’s Sioux City branch on Singing Hills Boulevard in Iowa manages about $33 million in loans and $33 million in deposits, according to a prepared statement released by Levo last week.

Levo President/CEO Fran Sommerfeld said the proposed acquisition aligns with the credit union’s growth strategy to better serve the needs of members.

Currently, the credit union’s 118 employees operate eight locations that serve more than 34,000 members.

Levo, South Dakota’s oldest credit union, recently announced an expansion of its service area from four counties around Sioux Falls to 29 counties along Interstate-29, which will include eastern South Dakota, southeast North Dakota, northwest Iowa and west central Minnesota.

“Over the years, we have received so many requests from members and non-members to expand the area we serve,” Sommerfeld said. “Levo means ‘to lift up,’ and we are excited to lift up an even larger group of people with our great services, products, rates and resources.”

Heritage Bank said it has reached out to its customers to let them know about the proposed branch acquisition. Customers will transition to Levo if the transaction is approved by regulators.

The bank branch currently serves about 800 customers.

“We are confident this move will be good for our Sioux City employees and customers,” Heritage Bank Chair and CEO Thomas Geiger said. “We’ll be leaving them in good hands. Levo is committing resources to grow and serve the Siouxland community. This is also a good transition for us, allowing Heritage to re-deploy our resources for continued growth of our digital banking and mortgage lending brands.”