Ferndale, Mich.-based Credit Union ONE has signed an agreement to absorb Hantz Bank, headquartered in nearby Southfield, Mich.
Upon completion of the deal, CU ONE will have about $1.4 billion in assets and 26 branch locations in metro Detroit, Ann Arbor, Grand Rapids and Traverse City.
The deal remains subject to regulatory approval and is expected to close later this year.
The terms of the transaction were not disclosed.
“We are excited to welcome the clients and employees of Hantz Bank to Credit Union ONE,” said Gary Moody, president and CEO of Credit Union ONE. “This merger creates significant opportunities to expand our market presence, and accelerate long-term growth plans, especially in the commercial and mortgage lending arenas.”
Credit Union ONE also said that it has had a “long relationship” with Hantz Group, which provides a range of financial planning, tax, insurance and investment services, as well as Hantz Bank, which is a separately operated community bank.
Hantz Group will continue to provide those services to the members of Credit Union ONE, while the clients of Hantz Group will have their consumer and commercial banking needs met by the credit union.
After the merger is completed, Hantz Group will remain a separate entity, said Donna Reid, senior vice president-chief marketing officer at Credit Union ONE
“Our post-merger relationship with Hantz Group leverages the strengths of both organizations to create a truly unique financial services experience for their clients and our members,” added Moody.
Hantz Bank Chairman John Hantz said in a statement, “After years of collaboration, this merger clears a path for our shared vision of a seamless experience for our clients and advisors. Scale is essential to successfully grow, and combining the talents and resources of Hantz Bank with those of Credit Union ONE creates both the scale and expertise to deliver such outcomes. We look forward to completing the merger and shifting our focus to the opportunities presented by our ongoing relationship “
Credit Union ONE was advised by Charley McQueen of McQueen Financial Advisors of Clawson, Mich. and Michael Bell of Howard & Howard Attorneys PLLC of Royal Oak, Mich.
“This is the second merger transaction involving a Michigan credit union and the first involving a Michigan-based bank as seller,” said Bell. “This is the fifth ‘whole bank’ deal of 2018 [as opposed to transactions involving only bank branches] and more announcements will be occurring in the near future.”
Bell added that the pace of such merger transactions in this space “is the highest I have experienced in the past 10 years.”
Credit Union ONE posted net income of $6.1 million in 2017, up from $3 million in the prior year.