Credit Union 1 and NuMark Credit Union Buy Illinois Banks | Credit Union Journal

Two Illinois-based community banks reached agreements to be acquired by credit unions in the past three days.

On Friday, Credit Union 1 announced that it would strengthen its presence in the northern suburbs of Chicago with the acquisition of NorthSide Community Bank.

The $1.3 billion asset-based credit union, based in Rantoul, Ill., said it has agreed to acquire the assets and liabilities of the NorthSide community, from an asset of $311 million. The purchase price has not been disclosed.

The news comes two days after NuMark Credit Union, a $624 million asset in Joliet, Illinois, announced it would acquire a $135 million asset from Pioneer State Bank in Earlville, Illinois. Illinois, under an all-cash arrangement.

Following the closing of the agreement, Pioneer will liquidate and distribute its remaining assets to its holding company, NBE Bancshares. At this point, the holding company will dissolve and distribute its remaining assets to its shareholders.

“It is clear to us that our organizations share a common vision in that we are both invested in the importance of putting people and community first in everything we do,” said Lloyd Fredendall, chairman and chief executive of NuMark, in a press release Wednesday. .

The transaction is expected to close in the fourth quarter of 2022.

The Credit Union 1 deal is the ninth announced this year in which a credit union is buying a bank. Last year, 13 banks agreed to be sold to credit unions, approaching the 2019 record of 16 such announcements.

“We are excited about the commercial lending expertise that NorthSide represents,” Credit Union 1 President and CEO Todd Gunderson said in a press release. “This acquisition for CU1 in the Chicagoland area perfectly complements our strategy of organic membership and asset growth through expanded products, services and technology.”

The transaction is expected to close in the fourth quarter of 2022 or the first quarter of 2023.

NorthSide Community, a subsidiary of Gurnee, Illinois-based AliKat Investments, has $198 million in loans and $247 million in deposits. The bank operates four branches in the Chicago metropolitan area and in Lake County, Illinois.

“We chose to partner with Credit Union 1 because their culture, leadership and lending culture all align very closely with ours,” NorthSide President and CEO Patti Clausen said in a statement. the press release. “With the size and scale that Credit Union 1 adds, it not only strengthens our ability to serve our existing customers in the way they expect, but also allows us to grow the number of businesses we can help develop into the new handset. Partnership.”

Michael Bell, a Honigman attorney who advised Credit Union 1, said Illinois is fertile ground for mergers and acquisitions because it has a relatively large number of smaller banks.

“You are seeing an increase in activity in general due to the number of sellers and buyers in the market and prices remaining stable,” Bell said. “More offers will be announced soon.”

Bell had previously predicted that there would be at least 25 offers announced this year.

NorthSide Community would be the eighth community bank in Illinois to be sold to a credit union since 2019.

Earlier this year, the Community Bankers Association of Illinois subject legislation it would require an exit fee when credit unions buy banks. A handful of states have pushed back on credit unions buying up banks in part because of the potential loss of tax revenue the banks pay.

Credit Union 1’s branch network covers Chicagoland, northern and central Illinois areas as well as the Las Vegas metro area and the Indianapolis and South Bend, Indiana markets. It has about 90,000 members across the country.

Raymond James & Associates served as financial advisor and Honigman LLP served as legal advisor to Credit Union 1. Hillworth Bank Partners served as financial advisor and Barack Ferrazzano Kirschbaum & Nagelberg LLP served as legal advisor to AliKat Investments.

McQueen Financial Advisors served as financial advisor and Luse Gorman served as legal advisor to NuMark Credit Union. Pioneer State Bank was advised by Olsen Palmer’s investment bank while Godfrey & Khan acted as legal counsel.