Lake Area Bank, which was founded in 1915 as Security State Bank of Lindstrom, will be acquired by Royal Credit Union.
The privately owned Lake Area Bank has approximately $500 million in assets and five offices: Lindstrom, Forest Lake, Hugo, Stillwater and White Bear Lake.
"Lake Area Bank is proud of our 100-plus year history as a community bank serving customers and our local communities," said Lake Area Chief Executive Marc Campbell in a news release. "Royal Credit Union shares our values and commitment to service, and we look forward to providing continued excellent service for many years to come."
Terms of the transaction were not disclosed. The deal is expected to close in the first quarter of 2022.
The deal will expand Royal's presence in Minnesota. The Eau Claire, Wis.-based credit union expanded into the Minnesota market in 2016 when it acquired Deerwood Bank in Apple Valley and Capital Bank in Saint Paul and in 2009 in a deal with REAL Credit Union that added three locations to Royal's network.
Royal has 230,000 members in Minnesota and western Wisconsin, serving 16 counties in Minnesota and 26 counties in Wisconsin. It was founded in 1964 by employees of Uniroyal Tire company in Eau Claire.
Royal Credit Union is in expansion mode of late. On June 23, Royal announced plans to merge with Peoples Choice Credit Union based in Medford, Wis. That deal is expected to clos later this summer.
In early August, Royal also broke ground on a new 2,900-square-foot branch office in Eau Claire, which is expected to be done in spring 2022.
