The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

Michigan State FCU inks first-ever bank acquisition

Michigan State University Federal Credit Union in East Lansing, Mich., has agreed to buy McHenry Savings Bank in McHenry, Ill.

The $7.6 billion-asset credit union said in a press release that it expects to buy the $312 million-asset unit of McHenry Bancorp in the first quarter. The credit union plans to pay $39 to $41 in cash for each share of McHenry Bancorp.

This would be the first bank acquisition for the credit union.

“This transaction provides an excellent opportunity to further expand and complement our services in McHenry County and the surrounding Chicagoland area,” April Clobes, the credit union’s president and CEO, said in the release.

“This adds exponentially to our growing market” in Chicago, she added. “We look forward to the combined synergies our two organizations will achieve in our local communities while providing McHenry Savings Bank’s clients with an expanded array of resources and products.”

Seven credit unions have announced plans to buy banks this year.

The credit union was advised by Piper Sandler and Luse Gorman. McHenry Bancorp was advised by Janney Montgomery Scott and Godfrey & Kahn.

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