Banking

Scott Credit Union strikes second M&A deal in two weeks

The $1.5 billion-asset Scott Credit Union in Edwardsville, Illinois, has agreed to merge with the $52 million-asset South Division Credit Union in Evergreen Park.

The move comes on the heels of Scott’s deal to acquire Tempo Bank in Trenton, Illinois, for $14.25 million. That transaction was announced Aug. 20.

“As part of SCU’s overall strategy for growth, we now have the opportunity to offer our services to even more potential members by expanding into the Chicago area,” Frank Padak, Scott CU’s president and CEO, said in a press release. “Meanwhile, South Division Credit Union will benefit from significant annual savings on expenses and a higher return on assets.”

Following the merger, South Division Credit Union CEO Geraldine Burek will retire. She has been with the organization for 40 years.

“South Division Credit Union’s goal has always been to provide the best possible products and services for our members,” Burek said in the press release. “Our team is excited for this opportunity to partner with Scott Credit Union and demonstrate to our members how we can become even better together.”

The merger expands Scott Credit Union’s field of membership to include part of the greater Chicago area and increases its footprint to 23 branch locations. Scott Credit Union will also gain approximately 5,500 new members and 20 full-time and part-time employees.

Scott CU earned $4.8 million in the second quarter, compared to $1.4 million a year earlier, according to call report data from the National Credit Union Administration.

South Division CU, which was founded in 1935, lost $252,000 in the second quarter. It lost $216,000 in the second quarter of 2020.



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