Wisconsin-based Summit CU acquiring Commerce State Bank

Wisconsin-based Summit CU will acquire substantially all of the assets and liabilities of Commerce State Bank, a subsidiary of Commerce Financial Holdings Inc., in the credit union's first-ever bank purchase.

Financial terms of the deal were not disclosed.

S&P Global Market Intelligence valuations for bank and thrift targets in the Midwest region between March 3, 2021, and March 3, 2022, averaged 142.20% of book and 148.94% of tangible book and had a median of 18.19x last-12-months earnings, on an aggregate basis.

The transaction is expected to close in the third quarter. It was unanimously approved by the companies' boards and is pending shareholder and regulatory approval.

The combined company will have nearly $6 billion in assets and 52 locations, according to a news release. At Dec. 31, 2021, Summit CU had $4.83 billion in assets, while West Bend, Wis.-based Commerce State Bank had $837.1 million in assets, according to S&P Global Market Intelligence data.

With the completion of the deal, Summit CU will expand in Waukesha County, Wis., by one branch to be ranked No. 31 with a 0.30% share of approximately $24.51 billion in total market deposits. The credit union will also enter Washington County, Wis., with one branch to be ranked third with a 9.88% share of approximately $3.97 billion in total market deposits; Sheboygan County, Wis., with one branch to the ranked No. 10 with a 3.67% share of about $3.44 billion in total market deposits; and Ozaukee County, Wis., with one branch to be ranked eighth, with a 3.44% share of roughly $3.36 billion in total market deposits, according to S&P Global Market Intelligence data.

Summit CU CEO and President Kim Sponem will remain the CEO of the combined organization. Additionally, employees of Commerce State Bank will still be part of the combined company.

McQueen Financial Advisors and Honigman LLP advised the credit union on the transaction, while Hillworth LLC and Reinhart Boerner Van Deuren SC advised the bank.

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