Royal CU To Buy Capital Bank
Subject to Regulatory Approval
EAU CLAIRE, Wis.—Royal Credit Union announced it has entered into a definitive agreement to acquire Capital Bank, based in Saint Paul, Minn.
The $1.7-billion credit union said the move is being made to add greater bricks-and-mortar access for its current membership, as well as to extend the CU’s reach.
Under the terms of the agreement, Royal will assume approximately $35 million in total assets in the transaction. The deal is expected to be completed in the second half of 2016
Capital’s lone office, located at 1020 Rice Street in St. Paul, will become a Royal CU branch, giving the credit union 25 locations across Minnesota and Wisconsin.
Statement from Royal Credit Union President & CEO:
“We are pleased to announce the planned acquisition of Capital Bank, which will provide more convenient access to our values-driven company in the Minneapolis-Saint Paul metropolitan area,” said Rudy Pereira, Royal Credit Union president and CEO. “Capital Bank is known as the ‘community bank’ within the city and we feel its current customers will be pleased by our commitment to providing exceptional financial value, great service and community giveback where the member comes first.”
Statement from Capital Bank President:
Capital Bank President Michael Remmers said it has been “Capital Bank's privilege to serve our customers and the community. It is important that the residents and businesses in the North End continue to receive personalized and outstanding services from an organization that will remain an active presence and driving force within our community. We believe Royal is well positioned and has the commitment and resources to be able to continue to deliver those community orientated products and services of the highest quality and value, to continue to our tradition of exceptional service, and to remain focused on supporting the community. We look forward to continuing to meet the needs of our customers to ensure a smooth transition."
About Royal Credit Union
Royal CU has been expanding in recent years. It opened a new office in 2014 in Hudson, Wis., and merged in Sacred Heart Hospital Employees Credit Union in Eau Claire in the same year. The CU’s net worth has grown from 8.54% in 2011 to 11.19% at the end of 2015. Royal made $30.6 million in 2013, $16.4 million in 2014, and $19.1 million last year.
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