WATERLOO, Iowa—The $6.8-billion Veridian Credit Union here has agreed to buy $113-million American Investors Bank and Mortgage, based in Eden Prairie, Minn.
The boards at both financial institutions have approved the transaction, which is expected to be finalized in July of 2023, the credit union said. The bank is approximately three hours north of the credit union’s headquarters and will mark Veridian’s first entry into Minnesota.
“We’re excited to welcome the employees and clients of AIBM to Veridian and eager to become a part of the Eden Prairie community,” said Veridian president and CEO Renee Christoffer. “Combining our resources will create greater access and opportunity for AIBM clients and Veridian members alike. The future we share is bright.”
Veridian reported $116,962,870 in net income 2021 and $53,630,802 through September of 2022, according to Call Report data. The CU’s net worth stands at 10.36%. AIBM posted $950,000 in net income 2021 and $887,000 through September of this year, according to FDIC data.
‘Personalized Service’
“American Investors Bank and Mortgage clients will continue to experience the personalized service they are accustomed to and will benefit from additional services offered by Veridian, along with the ability to meet the needs of an expanded base of clients,” said AIBM CEO David Coauette in a statement.
Coauette is planning to retire at the transaction’s completion after serving the bank for 21 years.
Veridian said it plans to retain all 14 staff members who work at the bank’s single branch. In addition to its new market in Minnesota, Veridian operates 30 branches across Iowa and eastern Nebraska and has 985 employees.
‘Bit of a Trend’
“There has been a bit of a trend recently—you can see these transactions are being used to enter new geography,” said Michael Bell, the leader of the Financial Institutions Practice Group at Honigman LLP, which is representing Veridian. “This is one of if not the absolute best ways to grow non-organically in new geography.”
Bell, the pioneer of CU purchases of banks, has been involved in 47 whole-bank agreements, plus additional bank branch purchases.