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.
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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.”
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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.
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