EAU CLAIRE, Wis. – Royal Credit Union on Wednesday said it has entered into a definitive agreement to acquire Capital Bank, Saint Paul.
The $1.7 billion CU said the acquisition will give it the opportunity to enhance office accessibility to its current Minnesota membership, as well as serve additional members in Minnesota.
Capital Bank’s ownership will retain its control of its other 14 bank locations in rural areas of Minnesota, Iowa and North Dakota. The Saint Paul urban location is the only bank affected by this sale.
Under the terms of the agreement, Royal will assume approximately $35 million in total assets in the transaction. Pending customary closing conditions, including obtaining regulatory approval, the completion of the transaction is expected to occur in the second half of 2016.
Royal CU’s management said it is committed to a smooth transition for the bank’s customers.
“We are pleased to announce the planned acquisition of Capital Bank, which will provide more convenient access to our values-driven company in the Minneapolis-Saint Paul metropolitan area,” Rudy Pereira, Royal CU’s president and CEO, said in a statement. “Capital Bank is known as the ‘community bank within the city’ and we feel its current customers will be pleased by our commitment to providing exceptional financial value, great service and community giveback where the member comes first.”
Royal said it has a history of successful growth. Recent expansion includes opening a new office in Hudson, Wis., and completing a merger with Sacred Heart Hospital Employees Credit Union in Eau Claire, Wis., both in 2014.
Once the agreement is finalized, Royal said it plans to service the acquired assets and assumed liabilities out of Capital Bank’s existing branch located at 1020 Rice Street in Saint Paul, Minn.
Community Bank
Capital Bank has been in business since 1956. Originally chartered by people owning businesses on Rice Street, the bank has remained under individual ownership and insured by the FDIC since its inception.
Current ownership has maintained control of Capital Bank since 1993. The bank said it has maintained its community bank image, operating as a full service community bank on Rice Street in Saint Paul's North End for the past 60 years. The bank continues to serve many of its original customers who grew up in the neighborhood and continue to operate businesses in the area.
“It has been Capital Bank's privilege to serve our customers and the community,” said Michael Remmers, Capital Bank’s president. “It is important that the residents and businesses in the North End continue to receive personalized and outstanding services from an organization that will remain an active presence and driving force within our community. We believe Royal is well positioned and has the commitment and resources to be able to continue to deliver those community-oriented products and services of the highest quality and value, to continue to our tradition of exceptional service, and to remain focused on supporting the community. We look forward to continuing to meet the needs of our customers to ensure a smooth transition.”
Royal Credit Union serves more than 160,000 members via 24 full-service offices. Membership is available to those who live or work in 18 counties in western Wisconsin or 12 counties in Minnesota. Counties served in Wisconsin are: Eau Claire, Chippewa, Barron, Buffalo, Burnett, Clark, Dunn, Jackson, Marathon, Pierce, Pepin, Polk, Rusk, St. Croix, Taylor, Trempealeau, Washburn, and Wood. Counties served in Minnesota are: Anoka, Carver, Chisago, Dakota, Goodhue, Hennepin, Olmsted, Ramsey, Scott, Wabasha, Washington and Winona. Realtors in the state of Wisconsin or Minnesota also are eligible to join the credit union.
