LIVONIA, Mich.—With less than two days remaining in 2024, the record number of CU/bank buys this year has reached 22, as $839-million Zeal Credit Union here has agreed to purchase $147-million Gogebic Range Bank, based in Ironwood, Mich.
As CUToday.info reported, OneAZ Credit Union’s purchase of 1st Bank Yuma two months ago set the one-year record for these agreements at 17.
The CU and bank have entered into a definitive agreement whereby Zeal will purchase substantially all of the assets and liabilities of Gogebic Range Bank in an all-cash transaction, the organizations stated in a joint release. The price of the deal was not disclosed.
The proposed transaction has been approved by the boards of directors of both institutions, and await bank shareholder approval and customary regulatory approvals. The transaction is expected to close by the end of the third quarter of 2025.
When the purchase is complete, Zeal will have 16 branches. The credit union is expected to keep predominately all the bank’s employees and branches, the organizations stated.
“We are excited for the opportunity to partner with Gogebic Range Bank and to improve access to our member benefits in the Upper Peninsula of Michigan and other contiguous market areas,” said Julie Kreinbring, president and CEO of Zeal. “Gogebic is a well-managed bank, and we look forward to welcoming their customers and employees into our family. Gogebic’s customers will become members of Zeal with full access to our wide array of products and services and our members will have expanded locations in the Upper Peninsula.”
‘Best Path Forward’
“After carefully considering what is best for our employees, customers, shareholders, and the communities we serve, we believe our decision to partner with Zeal is the best path forward for our organization,” said Neil Beckman, president and CEO of Gogebic Range Bank. “We are excited to bring together two organizations focused on exceptional customer service and high value products, as well as a philosophy of strong community support.”
Zeal made $23.5 million in net income in 2023 and $16.8 million this year. Net worth is a very high 19.76%, according to Call Report data. Gogebic Range Bank made $667,000 through September of this year and $1.26 million in 2023, according to FDIC data.
Luse Gorman, PC is serving as legal counsel and Doeren Mayhew Advisors, LLC is serving as financial advisor to Zeal Credit Union.
The news arrives on the same day Atlanta Postal CU and Affinity Bancshares called off their agreement, which was announced in May.