Corporate America Family Credit Union (CAFCU) announces plans to acquire Ben Franklin Bank of Illinois
Subject to Regulatory Approval
July 19, 2019-McQueen Financial Advisors (“McQueen Financial”) is excited to announce its most recent deal as advisor to Corporate America Family Credit Union (“CAFCU”), Elgin, Illinois, in acquiring Ben Franklin Bank of Illinois, Arlington Heights, Illinois, and its parent company, Ben Franklin Financial Inc., in an all-cash transaction. Ben Franklin Bank operates two bank branches in Rolling Meadows and Arlington Heights, Illinois, with $93.2 million in assets as of March 31, 2019. This acquisition increases CAFCU’s total number of branches to 22 and total assets to approximately $700 million.
Since the implementation of the Dodd-Frank Act, this transaction is the first where a federal mutual holding company which converted to a stockholding company will have its assets and liabilities sold to a credit union.
Under the terms of the deal, which is expected to close in early 2020, Ben Franklin Financial stockholders are estimated to receive between $10.33 and $10.70 in cash for each share of Ben Franklin common stock. The per-share consideration is subject to significant variation based on various factors, including a minimum equity target to be met by Ben Franklin Bank at closing, and the regulatory treatment of the liquidation accounts maintained. Both parties’ boards of directors unanimously approved the transaction.
Statement from Corporate America Family CU President & CEO:
Peter Paulson, president and CEO of CAFCU, stated, “Corporate America Family Credit Union (CAFCU) provides members with the tools, resources and expertise to empower financial success. Our mission is to make a meaningful difference in the financial lives of our members. We are looking forward to the acquisition of Ben Franklin Bank and feel this will be an excellent opportunity to provide even more individuals with the products and services CAFCU offers in furthering financial goals and dreams.”
Statement from Ben Franklin Financial President & CEO:
Steven Sjogren, president and CEO of Ben Franklin Financial stated “We have spent a long time seeking to maximize stockholder value and believe that we have negotiated an outstanding transaction for our stockholders. We are enthusiastic about our consolidation with Corporate America Family Credit Union as it significantly expands opportunities for our customers, our employees, and our community. Corporate America Family Credit Union has a history of focusing on the financial success of its members, and this collaboration ensures that customer-focused banking will remain in our community.”
About McQueen Financial Advisors
McQueen Financial is a nationwide financial advisory firm serving financial institutions since 1999. McQueen has advised on ~25% of all Credit Union / Credit Union Mergers nationwide, annually.
Transaction Leads
Dan Martin
Director of Transaction Advisory & Valuation