Royal Credit Union, Eau Claire, Wisc., has agreed to acquire 4,200 mortgages with an unpaid principal balance of $600 million from a failed Minnesota bank called The RiverBank. No purchase price was disclosed.
“Realizing the importance of local servicing, we have partnered with Royal Credit Union to transition the servicing,” said the Wyoming, Minn.-based bank in a letter to its customers. (The credit union has offices in Minnesota.)
The unusual credit union/bank deal comes less than a year after Royal acquired 11 branches and 20,000 customer accounts ($177 million of deposits) from troubled Anchor Bank.
The $418 million asset RiverBank was seized Friday by the Federal Deposit Insurance Corp., and state regulators. Its deposits and branches were sold to Central Bank, Stillwater, Minn., as part of a purchase and assumption deal.
Royal Credit Union has $1.1 billion of assets. The transaction is scheduled to close Oct. 14.
