LOMBARD, Ill.—The $1.2-billion Credit Union 1 here has agreed to buy the $311-million NorthSide Community Bank, located approximately an hour north in Gurnee, Ill.
The deal, expected to be completed in the fourth quarter of 2022, has been approved by the boards of directors of both organizations and is awaiting regulatory and bank shareholder approval, CU1 reported.
The purchase price was not disclosed.
CU1 said it plans to retain the bank’s staff.
“We are excited about the commercial lending expertise NorthSide represents. (Northside President and CEO) Patti Clausen, Jim Randall, and the entire NorthSide leadership team have fostered a customer centric culture that aligns and brings value to the entire Credit Union 1 business banking platform,” said Todd Gunderson, CU1 president and CEO. “We are excited to be able to serve more members by expanding our footprint in the northern Chicago suburbs. This acquisition for CU1 in the Chicagoland area perfectly complements our strategy of organic membership and asset growth through expanded products, services, and technologies.”
Added Clausen, the bank’s CEO, “We chose to partner with Credit Union 1 because its culture, leadership and lending culture all align very closely with ours. With the size and scale Credit Union 1 adds it not only strengthens our ability to serve our existing customers in the manner that they have come to expect but also allows us to increase the number of businesses that we can help grow across the new combined partnership. We are excited to be a part of that promising future.”
CU1 made $13.7 million in 2021 and $7 million in 2020. Capital stands at 8.75%. Northside Community Bank made $2.3 million in 2021 and $2.2 million the previous year.
A Record Year
Michael Bell, the pioneer of credit union purchases of banks and the attorney for CU1 in this deal, said this agreement solidifies his position that 2022 will be a record year for credit union bank buys.
“I said we would see more than 20 of these deals this year, and the latest announcement only makes me more confident that number will be achieved. Also, the fact these deals are picking up just further shows that bankers see credit unions as a valuable option when they decide to sell,” stated Bell, partner and co-chair of the Financial Institutions Practice Group at Honigman, LLP.
Bell has been involved in well over 45 whole-bank agreements, plus additional bank branch purchases.