ST. JOSEPH — United Federal Credit Union would broaden its footprint in Southwest Michigan with the planned acquisition of Edgewater Bancorp Inc.
United Federal and the parent company of Edgewater Bank, both of which are based in St. Joseph, announced the deal this morning. Pending regulatory and Edgewater shareholder approvals, the companies expect the deal to close in early 2021.
Executives billed the deal as bringing together two financial institutions to collaborate, rather than continue to compete against each other.
“Our two organizations share the same core values and have similar cultures. That’s why we are calling this partnership the ‘Real United’ campaign,” Edgewater Bank President and CEO Rick Dyer said in a statement. “Our teams understand what it means to take care of our customers and Members and how to exceed their expectations for service. Rather than continue competing for local business, employees and resources, it makes the most sense to combine our expertise to truly be the most dynamic, financial force in our local communities. This is real local progress.”
Financial terms of the deal were undisclosed. Dyer will become community president at United Federal when the transaction closes.
Edgewater Bank has five offices in Southwest Michigan — Bridgman, Buchanan, Coloma and two in St. Joseph — with $228.5 million in total assets as of midyear and $176.4 million in total deposits, according to its most recent quarterly financial report to the FDIC.
Once the deal closes, bank customers can become members of the credit union. Four of the five Edgewater Bank offices will become United Federal branches. Edgewater’s Buchanan office will close and consolidate into a nearby United Federal office.
United Federal CEO Terry O’Rourke called the deal “a partnership of minds and ideas, of ideals and values, of resources, talent and community spirit.”
“This collaboration is all about the community,” O’Rourke said in a statement. “Our two organizations are 100 percent committed to local decision making, local investment and local involvement and we both want to fortify that real local focus. Together, we can do more for the financial well-being of everyone that calls Southwest Michigan home.”
One of the largest credit unions based in Michigan, United Federal had 37 offices in Michigan, plus locations in Arkansas, Indiana, Nevada, North Carolina and Ohio with more than 177,000 members. As of Sept. 30, the credit union had $3.25 billion in total assets, $2.52 billion in total deposits, and $2.42 billion in total loans (including $291.4 million in commercial loans), according to a quarterly financial report to the National Credit Union Administration.
Attorney Michael Bell of Honigman LLP, who specializes in credit union acquisitions of community banks, and Charley McQueen with McQueen Financial Advisors advised United Federal on the transaction. Edgewater Bank was advised by Luse Gorman PC and Donnelly Penman & Partners.