PEORIA, Ill.—With banks rethinking their footprint as a result of the COVID-19 driven recession, more credit unions are picking up bank offices.
This time the $6.9-billion CEFCU here has agreed to purchase four Simmons Bank branches located in the Metro East area of Southern Illinois, near St. Louis. Select loan and deposit accounts, along with non-deposit product relationships, are included in the purchase, the credit union reported.
The deal is expected to close in the first quarter of next year, following state and federal regulatory approvals. Simmons Bank is headquartered in Pine Bluff, Ark.
“CEFCU has a longstanding history of success and growth through improving the financial well-being of members and the communities we serve. We’re excited to expand the opportunities for more individuals to experience the benefits of CEFCU membership,” said CEFCU CEO and President Mark Spenny.
The four new offices bring CEFCU’s total locations to 31 throughout Illinois and California.
“We are pleased about the opportunity this transaction provides our Illinois customers and associates and believe that the partnership with CEFCU will be very beneficial for all stakeholders,” said George Makris, Jr., president and CEO of Simmons Bank.
As CUToday.info has reported, the big shift to digital banking driven by the pandemic, along with negative effects on bottom lines, has more banks downsizing. Last
“This transaction is a further example of the trend I have been speaking about,” stated Michael Bell, a partner and co-chair of the Financial Institutions Practice Group at Honigman, LLP, Kalamazoo, Mich., which is representing CEFCU. “Banks are rethinking their footprint, CUs are strategically growing, and it’s a win for both seller and buyer. I am convinced that there could be 25 more of these transactions in the coming months if the sellers and buyers can come together. Banks should be aware that credit union buyers are ready.”
Bell has pioneered credit union purchases of banks—having completed more than 36 such deals and innumerable bank branch purchases.