Regulators Green Light CU Purchase of Bank Assets
All three federal regulators with a say in the matter have given a green light of Royal Credit Union's purchase of a struggling bank's assets.
According to a June 11 NCUA announcement, the agency along with the FDIC and Office of Thrift Supervision have allowed the $1 billion credit union, headquartered in Eau Claire, Wis., to purchase 11 branches along with deposits and loans from AnchorBank, headquartered in Madison.
The move will make 20,000 AnchorBank customers members of Royal CU and will bring Royal the branches, $177 million in deposits, loans, real estate and other assets, as well as 114 new employees.
Charles Grossklaus, CEO of Royal, said he would not comment "until I have word from NCUA but I am pleased at the good work done" by regulators on the application. He has called the branch acquisition "an outstanding deal for us."
AnchorBank acquisition will allow the north central Wisconsin CU to expand its footprint into both the Twin Cities and Madison markets. Since the start of the year, Royal has tried to welcome AnchorBank customers with e-mail messages and an outreach to community groups in cities where Royal will have branches.