MSU Federal Credit Union to Acquire Algonquin State Bank

Michigan State University Federal Credit Union (MSUFCU) in East Lansing has agreed to acquire Illinois-based Algonquin State Bank and its parent holding company, First Algonquin Co. Financial details have not been released.
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MSU Credit Union
Michigan State University Federal Credit Union in East Lansing is continuing its expansion in Illinois with the upcoming acquisition of Algonquin State Bank and its parent holding company, First Algonquin Co. // Photo courtesy of MSU Federal Credit Union

Michigan State University Federal Credit Union (MSUFCU) in East Lansing has agreed to acquire Illinois-based Algonquin State Bank and its parent holding company, First Algonquin Co. Financial details have not been released.

Once the deal is finalized, MSUFCU will purchase substantially all assets and assume substantially all liabilities of Algonquin State Bank. The transaction is MSUFCU’s second announced Illinois bank purchase in 2023.

The transaction has been unanimously approved by the boards of directors of both institutions. When it is finalized, the combined institution will have approximately $8.3 billion in assets, $6.3 billion in loans, $6.8 billion in shares and deposits.

The combined institution, including Algonquin State Bank and the recently announced acquisition of McHenry Savings Bank in Richmond, Ill., will have approximately $9 billion in assets by year-end 2024. The acquisitions will bring MSUFCU’s presence in Illinois to 10 branches making for a combined total of 35 branches across Michigan and Illinois.

The acquisition of Algonquin State Bank is part of MSUFCU’s strategy to expand its presence in the Chicago market, diversify its assets, and add additional talent and expertise. Algonquin State Bank customers who become members of MSUFCU will have full access to all MSUFCU’s product and service offerings.

“This partnership with Algonquin State Bank and its customers will further expand our presence in McHenry County and surrounding Chicagoland areas,” says April Clobes, president and CEO of MSUFCU. “The combined resources of MSUFCU and Algonquin State Bank will produce excellent opportunities for both our members and their customers and the communities they live in, with an expanded array of resources and products and additional branch locations.”

“After proudly serving the banking needs of Algonquin and surrounding communities since 1902 (and since 1974 by the current ownership group), we are happy to find a partner in MSUFCU that shares our values and dedication to its customers, employees, and the communities it serves,” says Dan Morrissey, chairman of Algonquin State Bank. “We know that MSUFCU will provide the resources and personalized service needed to meet the banking needs of our customers as well as the broader Chicago market.”

The transaction is anticipated to be completed in the late first quarter of 2024 subject to receiving all required regulatory approvals, approval by the shareholders of First Algonquin Co., and other customary closing conditions.