EAU CLAIRE, Wis. – Royal Credit Union on Friday said it has agreed to acquire the Apple Valley, Minn., office of Deerwood Bank.
The $1.7 billion Royal said the acquisition will enhance accessibility to its current Minnesota membership, as well as serve as a platform to attract new members in the North Star State. The office, at 14295 Cedar Avenue in Apple Valley, is Deerwood Bank's only facility included in the agreement.
Under the terms of the agreement, Royal will assume deposits and purchase assets of the Apple Valley branch. Pending customary closing conditions, including obtaining regulatory approval, the completion of the transaction is expected to occur in the second half of 2016.
Royal said it is committed to a smooth transition for the bank's customers.
"We are pleased to announce the planned acquisition of Deerwood Bank's Apple Valley office. We are excited to be expanding our office network to serve new and existing members in the Minneapolis-Saint Paul metropolitan area," Rudy Pereira, Royal CU's president and CEO, said in a press release. "Deerwood Bank takes pride in its commitment to community and that made the acquisition a good fit for our credit union. Royal is a values-based company that puts its members first and supports the communities it serves."
Deerwood Bank has been in business since 1910, but had only recently acquired its Apple Valley office. The office was added as part of a merger with American Bank of St. Paul in 2015. Deerwood Bank is privately owned and is insured by the FDIC.
"Royal Credit Union shares our commitment to excellent customer service and community-minded banking. Our customers in the South Metro Markets will be taken care of," said John Ohlin, Deerwood Bank's CEO. "Going forward, this transaction will further enable Deerwood Bank to focus on the St. Paul and Greater East Metro Markets, with which we have a long and rich history."
Deerwood Bank will retain ownership of all of its other 11 bank locations in Minnesota.
Royal CU said it has a "history of successful growth" and noted it is going through the regulatory approval process on the planned acquisition of Capital Bank in Saint Paul, Minn. Other recent expansion includes opening an office in Hudson, Wis., in 2014 and completing a merger with the Sacred Heart Hospital Employees Credit Union in Eau Claire, also in 2014.
Royal CU serves more than 160,000 members via 24 full-service offices. Membership is open to those who live or work in 12 counties in Minnesota or 18 counties in Western Wisconsin. Counties served in Minnesota include Anoka, Carver, Chisago, Dakota, Goodhue, Hennepin, Olmsted, Ramsey, Scott, Wabasha, Washington, and Winona. Counties served in Wisconsin include Eau Claire, Chippewa, Barron, Buffalo, Burnett, Clark, Dunn, Jackson, Marathon, Pierce, Pepin, Polk, Rusk, St. Croix, Taylor, Trempealeau, Washburn, and Wood. Realtors in the state of Minnesota or Wisconsin also are eligible to join the credit union.