APPLE VALLEY, Minn. —The $8-billion Wings Financial CU is entering the Wisconsin market with the acquisition of the $390-million Settlers Bank in Appleton, Wis.
Wings will acquire all three locations of Settlers—in Appleton, Madison, and Windsor, Wis. The bank is located approximately 300 miles east of the credit union’s headquarters.
The deal, still pending approvals from state and federal regulators, is expected to close in mid-2023, Wings reported.
When the transaction is complete, Settlers Bank locations will be re-branded as Settlers Best Credit Union, a division of the $8.048-billion Wings Financial Credit Union.
“We’re excited about the opportunity to introduce our services to the Wisconsin market,” said Frank Weidner, Wings Financial Credit Union president and CEO, in a statement. “We’ve been exploring opportunities to expand into Wisconsin and this transaction was a great fit for both Settlers bank and Wings. This opportunity will jumpstart our market presence in Wisconsin.”
“Settlers Bank was started 15 years ago to be accessible and to build relationships through collaboration. Wings shares these values and our partnership will allow us to build on our already strong market momentum,” said Settlers bank Founder and CEO Tom Spitz in a statement.
Settlers has been profitable, reporting $3.8 million in net income in 2021 and $1.89 million through June of this year, according to FDIC data.
Wings reported $89.7 million in net income in 2021, and $58.9 million through September of 2021. The CU’s net worth stands at 12.18%. The credit union has approximately 344,000 members.
Going to See ‘More’
“This is another fine example of a credit union growing into another state by acquiring a successful bank,” said Michael Bell, the leader of the Financial Institutions Practice Group at Honigman LLP, which is representing Wings. “This type and style of non-organic growth has become common, and we will continue to see more of this.”
Bell, the pioneer of CU purchases of banks, has been involved in well over 46 whole-bank agreements, plus additional bank branch purchases.