CEDAR RAPIDS, Iowa–Collins Community Credit Union is expanding across state lines to purchase a troubled bank. The $1.2-billion Collins Community said it plans to acquire the $12.3-million First Savanna Savings Bank in Savanna, Ill. Terms of the cash transaction have not been disclosed.
According to Collins Community, the deal is expected to close in the first half of 2020 pending regulatory approval.
FDIC data show First Savanna was founded in 1996 and has $10.4 million in deposits and $8.5 million in loans. It posted a net loss of $79,000 through the second quarter with ROA of -1.30%. In March of this year the FDIC placed First Savanna under a consent order for what the regulator said was unsafe and unsound banking practices and alleged violations of laws and regulations of the Bank Secrecy Act. The bank did not admit or deny the charges of unsafe or unsound banking practices as well as alleged BSA violations.
According to the Gazette, the 14-page order, which has not been lifted, requires the bank to develop and adopt BSA compliance and training programs, designate a qualified senior bank official to oversee the compliance program and establish account transaction monitoring.
“We are excited about this opportunity to partner with First Savanna Savings Bank and expand our footprint into Illinois,” Stefanie Rupert, president and CEO of Collins Community Credit Union, said in a released statement.
CCCU has approximately 87,668 members.