MADISON, Wis.—The $4.8 billion Summit Credit Union has agreed to buy $835-million Commerce State Bank in West Bend, Wis.
The buy marks the fourth CU purchase of a bank in 2022, all of which have been announced in the last few weeks.
The agreement includes Summit’s acquisition of substantially all of the assets and liabilities of Commerce State Bank. The agreement has been approved by both boards of directors and is pending shareholder and regulatory approval. The transaction is expected to close in the third quarter of 2022, Summit Credit Union stated.
Following the acquisition, Summit CU will have assets approaching $6 billion and 52 locations.
Summit CU, which reported $77.3 million in net income2021, has 11.70% capital and posted ROAA of 1.69% at the close of 2021, according to Call Report data. Commerce State made $11.6 million in 2021 and $7.1 million in 2020.
‘Exceptionally Well Run’
“Commerce State Bank is an exceptionally well-run institution and has experienced tremendous success,” said Kim Sponem, CEO and president of Summit. “We have similar values, cultures, and dedication to the highest levels of member and community service. This is a terrific strategic fit. Commerce State Bank’s stellar commercial lending portfolio adds to our strengths in mortgage and small business lending, as well as helping people with their everyday financial needs.”
In announcing the acquisition, Summit Credit Union noted is Wisconsin’s number-one mortgage lender and has been largest credit union lender of SBA loans to small businesses in Wisconsin for 10 years.
“When we opened Commerce State Bank nearly 17 years ago, we focused all efforts on serving our four core constituencies: clients, employees, communities and shareholders. Combining with Summit Credit Union significantly benefits each of them,” Commerce State Bank CEO Joe Fazio said. “This transaction is about growing to serve current clients, expanding to new communities, rewarding our shareholders, and providing career opportunities for employees of the combined company.”
Both the bank and credit union have won Top Workplaces awards in recent years. Commerce State employees will remain part of the combined organization.
‘Record Year’
“As I said, this should be a record year for credit union purchases of banks,” said Michael Bell, a partner and co-chair of the Financial Institutions Practice Group at Honigman, LLP, which is representing Summit. “The deals are lining up, and more will be announced soon. The marketplace is very active and some community banks are exercising their free market rights to include CUs in the process.”
Bell, the pioneer of credit union purchases of banks, has been involved in more than 40 whole-bank agreements, plus additional bank branch purchases.