EAU CLAIRE, Wis. – Royal CU agreed Friday to acquire 4,200 mortgage worth $600 million from failed The RiverBank, which was seized by state regulators in Minnesota.
“Realizing the importance of the local servicing, we have partnered with Royal Credit Union to transition the servicing,” said the Wyoming, Minn.-based bank in a letter to its customers. The transfer of the servicing of the mortgage loan does not affect any term or condition of the mortgages.
The unusual credit union/bank deal comes less than a year after Royal acquired 11 branches and 20,000 customer accounts with $177 million of deposits from troubled Anchor Bank.
The $418 million The RiverBank was seized Friday by state regulators and most of its remnants, including $380 million in deposits and six branches, sold off to Central Bank in Stillwater, Minn., as part part of a so-called purchase and assumption deal engineered by the FDIC.
“Our commitment to staying local is strong and, consistent with our vision to satisfy all of our Members’ financial needs; we look forward to building relationships with these Members so we can be there when they need their next financial product,” said Charles Grossklaus, president of the $1.1 billion credit union.
The transaction is scheduled to close Oct. 14.
