KALAMAZOO, Mich.–Advia Credit Union said it is reaching across state lines to buy a bank.
The $2.9-billion Advia said it has reached an agreement to acquire the $255-million NorthSide Community Bank in Gurnee, Ill. The bank, which is approximately 185 miles northwest of the credit union and just north of Chicago, has seven branches across its home market, plus the Illinois cites of Mundelein, Niles and Riverwoods.
Terms of the deal were not released. It is the third such acquisition of a bank by a credit union announced to date in 2024.
Advia Credit Union, which also operates six branches in Wisconsin, has a total of 12 branches in West Michigan and another seven in Eastern Michigan. The deal mks the third purchase of a bank by Advia. The CU previously purchased the $230-million Peoples Bank of Elkhorn, Wis., and the $84-million Mid America Bank in Janesville, Wis.
‘Financial Advantages’
“We are excited to welcome the customers of NorthSide Community Bank as members of Advia Credit Union,” said Advia CU President and CEO Jeff Fielder. “At Advia, our mission is to provide financial advantages to those we serve. NorthSide has a very talented team, and we are excited to have them join ours – growing stronger together. As an organization, we are dedicated to advancing lives in our communities and look forward to being an even stronger contributor within Illinois through outreach and volunteerism.”
The transaction, which is subject to regulatory and shareholder approval, and is expected to be completed in the third quarter of 2024, according to the credit union.
Advia reported $30.5 million in net income through the third quarter of 2023, with net worth of 10.53%. Northside made $1.4 million in net income through September of 2023, and $4.3 million in 2022, according to FDIC data.
Advisors on Deal
When the deal is completed, the credit union will have $3 billion in assets and more than 550 employees.
Michael Bell, the pioneer of credit union purchases of banks, said the deal underscores the pace of CU/bank buys is quickening.
“As you can see the year is starting with a lot of pace, barring a surprise global or macro economic event, this pace will continue for 2024,” stated Bell, partner and chair of the Financial Institutions Practice Group at Honigman, LLP, which is representing Advia.
Bell has been involved in over 55 whole-bank agreements, plus additional bank branch purchases.
Jay Wilson of Mercer Capital served as Advia’s financial advisor.