United Federal Credit Union acquiring Edgewater Bank

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A credit union based in St. Joseph is planning to acquire a nearby bank.

St. Joseph-based United Federal Credit Union (United) said Tuesday it will acquire the assets and assume the liabilities of Edgewater Bank (Edgewater), also based in St. Joseph, in an all-cash transaction, according to the institutions.

The transaction, which has been unanimously approved by the board of directors of both institutions, is expected to be finalized in the second quarter of 2021, subject to customary closing conditions, the approval of Edgewater’s stockholders and regulatory approvals.

Following the completion of the deal, Edgewater Bancorp and Edgewater Bank will settle their remaining obligations and distribute their remaining cash to the Edgewater stockholders an estimated 150 days after the deal. Edgewater currently estimates that, upon the completion of the liquidation, its stockholders will receive between $39.47 and $43.22 in cash consideration for each share of Edgewater common stock.

Edgewater Bank had about $249.1 million in assets as of Sept. 30. The acquisition will increase United’s total number of branches to 41 and total assets to about $3.5 billion.

Terry O’Rourke Courtesy United Federal Credit Union

“This collaboration is all about the community,” United President and CEO Terry O’Rourke said. “Our two organizations are 100% 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 (who) calls southwest Michigan home.”

Edgewater President and CEO Rick Dyer said he also wants to make sure southwest Michigan has the “strongest and broadest” financial opportunities.

“Our two organizations share the same core values and have similar cultures. That’s why we are calling this partnership the ‘Real United’ campaign,” he said. “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.”

Rick Dyer Courtesy Edgewater Bank

O’Rourke said once the shareholder and regulatory approvals are finalized, Edgewater customers will be eligible to become members of United. They will have access to United’s technology, knowledge, products and services, as well as other United membership perks.

Pending shareholder and regulatory approval, all of Edgewater’s branches will remain open except for one. Due to its proximity to United’s Buchanan branch, Edgewater’s Buchanan branch and its employees will be consolidated into the United branch. As of now, the banks expect to retain all employees of both institutions in their current roles.

“We want Edgewater customers to know that they can expect to maintain the same local relationships they have with the commercial lending officers and employees they have come to value and trust,” O’Rourke said.

Dyer will continue to have a leadership role, taking on the position of community president within United once the transaction is completed.

“I will remain actively involved in local decision-making,” he said. “You will continue to see me and other Edgewater team members advocating for and working in the best interests of everyone in our area.”

O’Rourke and Dyer said until approvals are complete, both organizations will conduct business as usual. Edgewater customers will continue to access their branches, accounts and services. The CEOs said their customers, members and employees will get updates throughout the approval and regulatory processes. Once the transaction is complete, the transition from Edgewater to United will be conducted as smoothly as possible for customers and employees.

“This is a partnership of minds and ideas, of ideals and values, of resources, talent and community spirit,” O’Rourke said. “Unifying the 110-year-old ‘real local bank’ (Edgewater) with United, a credit union with over 70 years of local community service, will give our customers, members and communities more.”

Michael Bell, of Honigman LLP, and Charley McQueen, of McQueen Financial Advisors, are representing United in the transaction. Luse Gorman PC and Donnelly Penman & Partners are the advisers for Edgewater.

United

Founded in 1949, United Federal Credit Union has over 177,000 members/owners worldwide and manages more than $3.2 billion in assets.

Its corporate offices and main branch are in St. Joseph with additional branches in Arkansas, Indiana, Michigan, Nevada, North Carolina and Ohio.

Edgewater

Edgewater Bancorp Inc. is the shareholder-owned holding company for Edgewater Bank, which was founded in 1910.

The bank has full-service branch offices in Bridgman, Buchanan, Coloma, Royalton Township and St. Joseph, along with commercial loan offices in Greenville, Fremont and St. Joseph.

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