The $ 3.7 billion Royal Credit Union embarked on a wave of mergers and acquisitions in 2021. On Friday, the Eau Claire, Wisconsin-based credit union (3, $ 7 billion in assets, 241,372 members) announced plans to merge Utilities Credit Union into the Royal Family. This is the third such Royal announcement this year.
In a statement from Royal, the new combined entity will operate under the name and direction of Royal. Utilities Credit Union ($ 6.8 million in assets, 899 members), also based in Eau Claire, said its members voted to approve the merger on September 9. The merger will take effect on September 30, 2021 and all UCU members will transfer to Royal by October 4, 2021.
“We look forward to welcoming UCU members to the Royal Credit Union,” said Brandon Riechers, President and CEO of the Royal Credit Union. “Royal offers a wide variety of products and services from several offices around Eau Claire, making the merger ideal for UCU members. We are excited to extend our value proposition and community engagement to UCU membership. In addition, we are pleased to offer all employees and retired employees of Xcel Energy and its subsidiaries additional benefits under the Royal Employer Partnership Program starting in October.
Earlier in 2021, the $ 52.4 million People’s Choice Credit Union in Medford, Wisconsin merged with Royal. Just last month, Royal signed a definitive deal to acquire the $ 438 million Lake Area Bank in Linstrom, Minnesota, further expanding the reach of the credit union market in that state.
According to Friday’s announcement, UCU was established in 1932 to serve employees, retirees and their families of Xcel Energy / Northern States Power. About 500 of the 896 UCU members are existing royal members.
“Royal Credit Union is a strong financial institution with a history quite similar to UCU, as Royal was founded by a group of employees within a company in 1964,” said John R. Ness, Chairman of the Board of Directors of Utilities Credit Union. “Royal’s primary goal of creating a positive impact on the lives it touches is in keeping with UCU’s philosophy and values, and we value Royal’s excellent reputation in the communities it serves. “
UCU currently has a single office inside the Xcel Energy building located in Eau Claire. According to Royal, once the merger is complete, members will be served in existing Royal locations.