US Banking M&A Deals: Credit Unions on a Buying Spree in 2024

Beacon Credit Union's acquisition of Mid-Southern Savings Bank and Advia Credit Union's purchase of NorthSide Community Bank mark the latest in a series of bank acquisitions by credit unions in the US.

Advia Credit Union, based in Kalamazoo, Michigan, has recently announced its agreement to acquire NorthSide Community Bank, a $255 million-asset institution located in Gurnee, Illinois. This strategic move will allow Advia to expand its presence in northeastern Illinois by adding branches in Gurnee, Mundelein, Niles, and Riverwoods. The acquisition is expected to be finalized in the third quarter of this year, and it will propel Advia's assets beyond $3 billion, as well as increase its headcount to over 550 employees. With this expansion, Advia Credit Union will be able to serve approximately 200,000 members across 32 branches in Michigan, Illinois, and Wisconsin.

This acquisition marks the third bank acquisition announced by a credit union in 2024, indicating a trend of credit unions seeking to expand their reach and services. The financial terms of the deal have not been disclosed, but it is clear that Advia Credit Union is making significant strides in its growth and market presence.

In a similar move, Beacon Credit Union has also entered into an agreement to acquire Mid-Southern, a $266 million-asset institution, marking Beacon's first community bank acquisition. This strategic expansion into southern Indiana will see Beacon keeping all three of Mid-Southern's branches and its three loan production offices open after the deal is finalized. The credit union landscape is witnessing a flurry of deals involving credit unions acquiring banks, with four such deals announced in the first 26 days of 2024. This is a significant increase compared to the 11 credit union deals for whole banks announced in the previous year.

The acquisition of NorthSide Community Bank by Advia Credit Union and the acquisition of Mid-Southern by Beacon Credit Union are indicative of the dynamic and evolving nature of the financial industry. These strategic moves reflect the ongoing trend of credit unions seeking to expand their services and market presence through acquisitions and partnerships.

The recent acquisitions by Advia Credit Union and Beacon Credit Union signal a period of growth and expansion for these financial institutions. As they continue to expand their reach and services, it is clear that credit unions are playing an increasingly significant role in the financial landscape.