EAST LANSING, Mich. & ALGONQUIN, Ill.--(BUSINESS WIRE)--Michigan State University Federal Credit Union (MSUFCU) has entered into a definitive purchase and assumption agreement with Algonquin, IL based Algonquin State Bank and its parent holding company, First Algonquin Company. Pursuant to the definitive agreement, MSUFCU will purchase substantially all assets and assume substantially all liabilities of Algonquin State Bank. The transaction is MSUFCU’s second announced Illinois bank purchase in 2023.
The transaction has been unanimously approved by the boards of directors of both institutions. When the transaction is finalized, the combined institution will have approximately $8.3 billion in assets, $6.3 billion in loans, $6.8 billion in shares and deposits.
The combined institution, including Algonquin State Bank and the recently announced acquisition of McHenry Savings Bank, will have approximately $9 billion in assets by year-end 2024. The acquisitions will bring MSUFCU’s presence in Illinois to 10 branches and will have 35 branches across two states.
The acquisition of Algonquin State Bank continues MSUFCU’s strategy to expand its presence in the Chicago market, diversify its assets, and add additional talent and expertise. Algonquin State Bank customers who become members of MSUFCU will have full access to all MSUFCU's expansive product and service offerings.
April Clobes, President and CEO of MSUFCU, said, “This partnership with Algonquin State Bank and its customers will further expand our presence in McHenry County and surrounding Chicagoland areas. The combined resources of MSUFCU and Algonquin State Bank will produce excellent opportunities for both our members and their customers and the communities they live in, with an expanded array of resources and products and additional branch locations.”
Dan Morrissey, Chairman of Algonquin State Bank, stated, “After proudly serving the banking needs of Algonquin and surrounding communities since 1902 (and since 1974 by the current ownership group), we are happy to find a partner in MSUFCU that shares our values and dedication to its customers, employees, and the communities it serves. We know that MSUFCU will provide the resources and personalized service needed to meet the banking needs of our customers as well as the broader Chicago market.”
The transaction is anticipated to be completed in the late first quarter of 2024 subject to receiving all required regulatory approvals, approval by the shareholders of First Algonquin Company, and other customary closing conditions.
Michigan State University Federal Credit Union was advised in the transaction by Piper Sandler & Co as exclusive financial advisor and Luse Gorman, PC as legal counsel. First Algonquin Company and Algonquin State Bank were advised by Olsen Palmer LLC as exclusive financial advisor and Vedder Price P.C. as legal counsel.
About Michigan State University Federal Credit Union
Founded in 1937, MSUFCU has a national reputation for excellence and has received several top industry and workplace awards, including being named a Best Credit Union to Work For® by American Banker for the sixth year, a Top Workplace by the Detroit Free Press for 12 consecutive years, and a National Best and Brightest Companies to Work For® winner for seven consecutive years. MSUFCU has also been certified as a Great Place to Work® for 10 consecutive years and has been recognized by the Credit Union National Association, earning first place for the people-helping-people philosophy Louise Herring Award. MSUFCU is headquartered in East Lansing, Mich., and has 23 branches, and an additional seven in construction, over 350,000 members, $7.61 billion in assets, and more than 1,200 employees. For more information, visit msufcu.org.
About First Algonquin Company and Algonquin State Bank
Founded in 1902, Algonquin State Bank is proud of its tradition of service to the Village of Algonquin and surrounding communities – a tradition attributable to dedicated staff and the many loyal customers who have supported the bank for generations. Algonquin State Bank provides a full range of banking and lending services to individuals and businesses. Algonquin State Bank has two branches, with approximately $145 million in assets and $131 million in deposits as of June 30, 2023. For more information, visit www.algonquinstatebank.com.
Forward Looking Statements
This news release may contain certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations. Such forward-looking statements are about matters that are inherently subject to risks and uncertainties. Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this news release or made elsewhere from time to time by First Algonquin Company, MSUFCU or on behalf of either of them. First Algonquin Company and MSUFCU disclaim any obligation to update such forward-looking statements.