WQOW TV: Eau Claire, WI NEWS18 News, Weather, and SportsRCU cuts deal to take over 11 AnchorBanks

RCU cuts deal to take over 11 AnchorBanks

Eau Claire (Press Release) – Royal Credit Union (RCU) will be acquiring 11 branches in northwestern Wisconsin from AnchorBank.

The AnchorBank offices acquired by RCU include Amery, Balsam Lake, Centuria, Menomonie, Milltown, New Richmond, Osceola, River Falls, St. Croix Falls, Somerset and Star Prairie. According to Charles Grossklaus, RCU’s chief executive officer, the acquisition is awaiting regulatory approval and is expected to be finalized in the first quarter of 2010. The financial terms of the transaction were not disclosed.

Under the terms of the agreement, RCU will assume approximately $177 million in deposits and a proportionate amount in loans, real estate and other assets. RCU will purchase nine of the offices and assume the lease on the other two offices.

“RCU is strong, stable and well positioned for the purchase of these eleven offices in western Wisconsin,” Grossklaus said. “Our organization has a long history of successfully merging and growing financials, and we see great potential in these new locations.”

Once the acquisition is complete, RCU will have 26 offices, 23 across central and western Wisconsin and three in the Twin Cities Metro area, serving more than 140,000 Members.

“We are excited by the opportunity to acquire these AnchorBank offices, which fit perfectly into our five year expansion plan.” Grossklaus added. “We want to be strategic with where we expand. These are successful offices for AnchorBank and a great opportunity for RCU and our Members.”

RCU has a large percentage of market share in the communities they already serve. Because of this, RCU has been expanding into western Wisconsin and Minnesota. This started with buying land in New Richmond in June 2007, buying land in Hudson in October 2008, opening an office in Menomonie in March 2009, and merging with REAL Financial Credit Union in the Twin Cities in August 2009.

“The current economic times are creating opportunities that never existed before and probably never will again,” states Doug Olson, RCU’s Board Chair. “We are capitalizing on our strength to broaden and extend the benefits of belonging to a credit union”.

The proposal RCU submitted included the purchase of the AnchorBank buildings and assets. This would not be a merger with, or an acquisition of, AnchorBank. RCU will retain all the AnchorBank employees of these 11 offices and all the customers will become RCU Members.

According to AnchorBank CEO Chris Bauer, “Royal Credit Union has an outstanding legacy of service in the communities of central and western Wisconsin, and we are confident that we’re leaving these AnchorBank customers and employees in excellent hands at this distinguished hometown institution.” 

RCU has experience expanding into communities like these. For example, RCU has merged with smaller credit unions in Rice Lake and Colby. “We have been successful in part because we are actively involved in the communities and we staff our offices with people who live in those communities. We feel that the AnchorBank customers would benefit from becoming RCU Members and taking advantage of what we have to offer as a full service community credit union,” states Grossklaus.

RCU, Royal Credit Union, is a federally insured credit union serving over 120,000 Members with 12 full service offices in Chippewa Falls, Colby, Eau Claire, Menomonie, New Richmond, Rice Lake, and Whitehall in Wisconsin and 3 full service offices in Edina, Coon Rapids, and St. Paul in Minnesota. You can open an account or apply for a low-cost loan at RCU if you live or work in 18 counties in Western Wisconsin, 12 counties in the Twin Cities Metro in Minnesota, or are a Realtor in Wisconsin or Minnesota. Call RCU at 715-833-8111, 952-933-9000, or

1-800-341-9911 for more information 7 days a week.  You can also visit our website at www.rcu.org.