August 12, 2021 at 2:52 p.m.
Under the terms of the agreement, Royal will assume approximately $500 million in total assets in the transaction. Pending customary closing conditions, including obtaining regulatory approval, the completion of the acquisition is expected to occur in the first quarter of 2022.
Royal is committed to a smooth transition for the bank’s customers. “Royal is excited for the opportunity to bring our value proposition and commitment to making a positive impact in the lives we touch to expanded areas in Minnesota,” said Brandon Riechers, Royal Credit Union President & CEO. “Lake Area Bank is a family-owned financial institution that has served the community for over 100 years. Royal’s values-driven and relationship-based approach to financial management made this acquisition a good fit for our credit union.”
Lake Area Bank was established in 1915 in Lindstrom. It is privately owned and insured by the FDIC. Lake Area Bank’s core purpose is to make a difference in people’s lives and the organization is dedicated to the communities it serves.
“Lake Area Bank is proud of our 100+ year history as a community bank serving customers and our local communities,” said Marc Campbell, Lake Area Bank President & CEO. “Royal Credit Union shares our values and commitment to service, and we look forward to providing continued excellent service for many years to come.”
Royal has a history of successful growth through mergers and acquisitions. In June, Royal announced plans to merge with Peoples Choice Credit Union in Medford, Wisconsin. In 2016 Royal expanded in the Minnesota market through the acquisition of Deerwood Bank in Apple Valley and Capital Bank in St. Paul.
Winthrop & Weinstine, P.A. acted as legal advisor and Oakridge Financial Services Group, Inc. acted as financial advisor to Lake Area Bank. Honigman, LLP acted as the legal advisor and McQueen Financial Advisors acted as financial advisor to Royal.