AnchorBank, a wholly owned subsidiary of Anchor BanCorp Wisconsin, has entered into a definitive agreement for the sale of its 11 branches in Northwestern Wisconsin to Royal Credit Union (RCU).
Under the terms of the agreement, RCU will assume approximately $177m in deposits and receive a corresponding amount in loans, real estate and other assets.
Chris Bauer, CEO of AnchorBank, said: “This transaction with RCU allows AnchorBank to make significant progress toward our goal of increasing our capital ratios in order to continue to address the challenges we’re facing in this economic climate. Royal Credit Union has an outstanding legacy of service in the communities of central and western Wisconsin, and we are confident that these branch customers will be in excellent hands with this distinguished hometown institution.
“Beyond the key outcomes of shrinking assets and improving capital ratios, this sale will also allow AnchorBank to further reduce core operating expenses and to identify potential areas for additional cost savings in a streamlined branch network.”
Charlie Grossklaus, CEO of RCU, said: “We are excited by the opportunity to acquire these AnchorBank offices, which fit perfectly into our five year expansion plan. We want to be strategic with where we expand. These are successful offices for AnchorBank and a great opportunity for RCU and our Members.”
However, the transaction is subject to regulatory approval and customary closing conditions and is expected to be completed in the first quarter of calendar 2010.
