Verve, an Oshkosk, Wis., credit union said it planned to acquire South Central Bank NA, a $300-million community bank based in the Chicago area.
For the $936-million Verve, the South Central Bank purchase in just the latest in a number of CU mergers over the last three years. Originally established in 1965 as a community bank, South Central Bank offers a full range of financial services and primarily focuses on business banking with five branches located in areas around Chicago, Verve said.
South Central Bank has relationships with more than 750 small businesses, many of them long-term, the CU added. Verve, a Credit Union said the addition will not only boost its financial strength but aligns well with its focus on business lending.
Calling credit union acquisitions of banks a “disturbing trend,” the Independent Community Bankers of America recently announced the formation of a task force to “study” the purchases.