MINNEAPOLIS, Minn.—The $4.8-billion Blaze Credit Union here has agreed to acquire the Claremont branch of Luminate Bank in a deal that will expand its footprint in southeast Minnesota and add roughly $25 million in deposits and about 550 customers.
The transaction, which is expected to close on or before Oct. 9 pending regulatory approval, will transfer the Claremont, Minn., location—and its customer relationships—to Blaze, giving the credit union a stronger presence along the U.S. Highway 14 corridor between Rochester and Waseca while increasing its total network to about 30 locations.
“We are excited about bringing the Blaze way of banking to Claremont and the surrounding area. Our mission is to better lives. This opportunity provides continued local support to Luminate Bank’s Claremont customers, our members, and our communities,” said Dan Stoltz, Blaze CEO/president.
"We remain deeply committed to community banking in the markets we serve and are confident that Blaze Credit Union will provide strong local support and excellent service to our Claremont customers,” said Marc Campbell, CEO of Luminate Bank.
The pioneer of credit union purchases of banks, Michael Bell, addressed the current pace of branch buys.
“In general, the market for bank branch dispositions/acquisitions remains active. Banks are seeking efficiency and optimization, and CUs are seeking geographic and member growth,” stated Bell, a partner and chair of the Financial Institutions Practice Group at Honigman, LLP, which is representing Blaze CU. “These transactions are win-win transactions for all parties.”
Bell has been part of more than 75 whole-bank agreements plus additional bank branch purchases.