HASTINGS, Mich.—The $2.2-billion Lake Trust Credit Union announced it intends to purchase the Hastings, Mich., branch of Mercantile Bank of Michigan. The bank said it is shedding the branch in response to the shift by consumers to increasingly use electronic banking.
The agreement includes the 4,300-square-foot branch footprint and all associated assets, including approximately $16 million in deposits, the credit union reported.
The deal is expected to close in early 2021. Lake Trust currently operates a branch location in Hastings at 209 N. Church Rd. Lake Trust said it will transition Hastings operations to the newly acquired location following renovations.
“Our customers are using alternative banking options more and relying less on physical branch locations for their banking and lending needs, thanks to our high-touch service model and robust online, mobile and card banking platforms,” said Raymond Reitsma, president of Mercantile Bank of Michigan.
Grand Rapids, Mich.-based Mercantile Bank is Michigan’s third-largest bank and operates 39 branches throughout Michigan, with assets totaling approximately $4.4 billion.
Long History in Community
“Lake Trust has a long history of serving the Hastings community. As we consistently work to enhance our member experience, the purchase of Mercantile Bank’s Hastings branch will offer expanded convenience and accessibility for Lake Trust members in the area,” Lake Trust CEO David Snodgrass said. “For current Mercantile Bank customers, we look forward to introducing them to Lake Trust and helping them reach their financial goals.”
Added Reitsma, “As we reviewed our existing branch network and our presence in the Hastings market, we felt it was in the best interest of our Hastings branch customers that we find a partner that was established in the Hastings community and aligned with our mission and values. We will continue to communicate with our customers in the coming months to ensure a clear and seamless transition process as Lake Trust assumes branch operations in Hastings.”
More Branch Sales to Occur
Michael Bell, a partner and co-chair of the Financial Institutions Practice Group at Honigman, LLP, Kalamazoo, Mich., told CUToday.info earlier this year banks would be shedding branches as consumer behavior changes.
“The trend continues. Banks are optimizing their branch networks and finding credit unions are the best partners in the process. Credit unions are in turn strengthening operations through the addition of branches, members and talented employees,” said Bell, who represents Lake Trust.
Bell has pioneered credit union purchases of banks—having completed more than 35 such deals and innumerable bank branch purchases.