Credit/Shutterstock
The $7.7 billion Michigan State University Federal Credit Union in East Lansing and the $773 million Five Star Credit Union in Dothan, Ala., announced proposed agreements on Monday to complete bank acquisitions by next year, pending approvals from shareholders and regulators.
MSUFCU has signed a definitive agreement to acquire the $322 million McHenry Savings Bank in McHenry, Ill., for an estimated $36.3 million to $38.2 million. Shareholders are expected to receive approximately $39-$41 in cash for each share of McHenry Bancorp, Inc. common stock, subject to adjustment based on McHenry Savings Bank's equity value at closing. McHenry Savings Bank has recorded shares outstanding of 931,709.
Recommended For You
"This transaction provides an excellent opportunity to further expand and complement our services in McHenry County and the surrounding Chicagoland area," MSUFCU President/CEO April Clobes said in a prepared statement.
McHenry Savings Bank's 76 employees operate three branches, serving 5,000 customers.
In July, MSUFCU said it plans to open five branches in Chicago next year — its first outside its home state. This is the credit union's first bank acquisition.
"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," Clobes said.
McHenry Savings Bank was founded in 1955. It currently manages $223 million in loans, $261 million in deposits and $25.2 million in equity capital, according to its second quarter financial performance report filed with the FDIC.
The transaction is expected to close during the late first quarter of 2024 pending regulatory and shareholder approvals. At that time, McHenry Savings Bank President/CEO and Chairman Donald H. Wilson is planning to explore other options, according to Clobes.
Five Star Credit Union plans to buy its third bank, the $212 million OneSouth Bank in Macon, Ga.
The all-cash deal will be structured as a purchase and assumption transaction. Financial terms were not disclosed.
OneSouth Bank was founded in 1941. Its 30 employees operate four branches, two in Macon and one each in Leesburg and Blakely, serving 3,800 customers.
The bank manages $171 million in loans, deposits of more than $178 million and equity capital of $22.5 million, according to its second quarter financial performance reports filed with the FDIC.
"Five Star Credit Union and OneSouth Bank have over 140 years of combined service to members and customers in the southern parts of Alabama and Georgia," Five Star President/CEO Bob Steensma said in a prepared statement. "We share similar values, and our partnership will reinforce the foundation for an extraordinary community financial institution that puts our members, employees and communities first. We look forward to welcoming the OneSouth Bank team members and customers to the Five Star family."
The transaction is expected to close during the second quarter of 2024 if approved by regulators and shareholders.
In May 2014, Five Star completed its first bank purchase of Flint River National Bank in Camilla, Ga., and in November 2015, the credit union completed a purchase of its second bank, Farmers State Bank in Lumpkin, Ga.
The MSUFCU and Five Star bank buy deals represent the fifth and sixth agreements announced this year. In 2022, there were 16 credit union bank acquisition deals.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Peter Strozniak
Credit Union Times reporter covering credit union operations, fraud, M&As, leagues, business continuity, and breaking news.
