Summit Credit Union in Madison, Wis., has agreed to buy Commerce State Bank in West Bend, Wis.
The $4.8 billion-asset Summit did not disclose the price it will pay for the $837 million-asset Commerce State. The deal is expected to close in the third quarter.
Commerce State is currently a unit of Commerce Financial Holdings.
“We have similar values, cultures and dedication to the highest levels of member and community service,” Kim Sponem, Summit’s president and CEO, said in press release.
“This is a terrific strategic fit,” Sponem added. Commerce State’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.”
“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,” Joe Fazio, Commerce State’s CEO, said in the release.
Commerce Financial originally planned to sell itself to Nicolet Bankshares in Green Bay, Wis., for $130 million, but the companies terminated the proposed merger during the early days of the coronavirus pandemic.
Commerce State is the third bank to agree to be sold to a credit union in the last two weeks.
Vinings Bank in Smyrna, Ga., agreed on Feb. 21 to sell to Georgia’s Own Credit Union in Atlanta. Persons Banking in Forsyth, Ga., announced plans on March 1 to sell to Robins Financial Credit Union in Warner-Robins, Ga.
Commerce State is also among the biggest banks to agree to sell to a credit union. The largest is the $1.6 billion-asset Heritage Southeast Bank in Jonesboro, Ga., which has a pending sale to VyStar Credit Union in Jacksonville, Fla.
Credit unions announced 13 bank acquisitions last year. The busiest year so far was 2019, when 16 credit union-bank mergers were announced.
McQueen Financial Advisors and Honigman advised Summit. Hillworth and Reinhart Boerner Van Deuren advised Commerce State.