Verve, a Credit Union has announced plans for its intent to acquire South Central Bank, National Association (NA), a $300 million asset community bank based in the Chicago area.
Image: Credit union Verve plans to acquire South Central Bank, NA. Photo: courtesy of rawpixel from Pixabay.
The acquisition of South Central Bank is expected to be finalized in the fourth quarter, pending regulatory approval.
For Verve, the South Central Bank, NA purchase follows a number of mergers that have grown the cooperative – a 2014 merger with Lakeview (Neenah, WI) and Best Advantage (Brillion, WI) Credit Unions, and mergers with Community (La Crosse, WI) and Two Rivers Community (Two Rivers, WI) Credit Unions in 2015.
Originally established in 1965 as a community bank, South Central Bank, NA offers a full range of financial services and primarily focuses on business banking with five branches located in thriving areas around Chicago. South Central Bank, NA has relationships with more than 750 small businesses, many of them long-term. “Our commitment to supporting and growing our business customers led us to a partner who shares that same focus.” said Todd E. Grayson, president of South Central Bank, NA. “This acquisition will allow us to continue to deliver products and services that our business customers expect from us. We are excited to gain additional resources that will help to drive their continued success.”
Committed to remain a safe and sound financial, the acquisition will not only strengthen Verve’s financial foundation allowing for continued growth, but it also aligns well with its similar relationship focused business approach. “Not only will this acquisition allow us to grow in a new thriving market but financially it makes sense for the entire membership of Verve. South Central Bank, NA is an extremely well-run bank and we look forward to expanding our field of membership and serving the Chicago market.” said Kevin J. Ralofsky, president and CEO of Verve, a Credit Union.
“Credit Union acquisitions of community banks have been accelerating over the past few years” said Michael Bell, attorney and counselor with Royal Oak, MI, based Howard & Howard, which presents new options for credit unions to grow through similarly aligned focuses of community banks. Bell is representing Verve in the proposed acquisition of South Central Bank, NA. McQueen Financial Advisors, Inc. of Clawson, MI represented Verve as the financial advisor. South Central Bank, NA was represented by James M. Kane of Vedder Price and Paul A. O’Connor of Janney Montgomery Scott.
After the acquisition is finalized, the combined organization will total over $1.2 billion in assets, operate 21 branches and serve nearly 66,000 members in 24 counties.
Source: Company Press Release