CHAMPAIGN, Ill.— U of I Community Credit Union (UICCU) said it has entered into an agreement to purchase and assume certain consumer deposits from the CIBM Bank branch located in Danville, Ill.
Under terms of the deposit assumption agreement, the $590.5-million UICCU will assume most consumer deposits, including certificates of deposit, money market deposit accounts, IRA savings accounts, and interest-bearing and non-interest-bearing checking and savings accounts, associated with the branch subject to the customary regulatory approval, the credit union said.
The transaction is expected to close in the second quarter of 2023. Danville, Ill., is approximately 33 miles east of U of I Community CU’s headquarters.
As of Dec. 31, 2022, the retail deposit balances at the CIBM Bank branch in Danville were approximately $29 million. UICCU’s total deposit balances were $530 million.
Continued ‘Momentum’
“As a local not-for-profit institution, we welcome this opportunity to further serve members in Vermilion County and continue the positive momentum in that community,” said UICCU President and CEO Chris Harlan in a statement accompanying the announcement. “We are committed to providing an easy process for CIBM customers and delivering value to them through best-in-class technology, competitive rates, convenience, and top products.”
The credit union said once the transaction is completed, affected CIBM Bank depositors will automatically become members and depositors of UICCU.
Serving Needs
“We are happy to announce the planned transfer of our Danville retail accounts to UICCU,” said Brian Chaffin, CEO of CIBM Bank. “UICCU has the branch network and product offerings to serve the needs of our consumer account holders in the Danville area. The transfer of the accounts should be seamless and CIBM customers will be receiving additional information after all required regulatory applications are approved.”
The pioneer of credit union purchases of banks, Michael Bell, forecast in a previous CUToday.info report that CU purchases of bank branches will climb this year, in part because many CUs see the buys as a good way to bolster deposits and liquidity.
“This is the second branch deal of ’23 and I absolutely expect more to occur,” said Bell, leader of the Financial Institutions Practice Group at Honigman LLP. Bell has been involved with nearly 50 credit union purchases. “This space is heating up with interested sellers and buyers.”
UICCU has approximately 57,000 members