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Levo Credit Union plans to acquire a Sioux City, IA, bank branch from Heritage Bank, National Association. The branch is located at 4530 Singing Hills Boulevard. Levo, which is headquartered in Sioux Falls, SD, has entered into an agreement with Heritage, which is based in Spicer, MN.
“This acquisition aligns with our growth strategy, allowing us to better serve the needs of our members and provide opportunity for more people to live better. That’s our mantra – live better – and that’s what we do is help people live better. Our members are our owners, which means we work for them. We exist to help them reach their financial goals, and they appreciate that,” says Levo President and CEO Fran Sommerfeld.
Once the agreement is approved by regulatory authorities and signed by both parties, Levo will take on some deposits and loans, as well as property – such as the branch. This process is expected to take several months. Levo plans to offer employment to current branch staff. Heritage has reached out to its customers to let them know of the acquisition, and will continue to communicate the impact to customers. Customers will officially transition to Levo when the transaction closes, which is expected to happen in the fourth quarter of 2024
Levo recently announced an expansion of its service area from 4 counties around Sioux Falls to 29 counties along the I-29 corridor in South Dakota, Iowa, North Dakota, and Minnesota. Levo is a full-service financial institution with $470 million in assets. It offers personal loans like auto and mortgage, business loans, deposits, and other services – both online and in its six Sioux Falls branches. It will gain approximately $33 million of loans and $33 million of deposits by acquiring this branch.
Thomas Geiger, Chairman and CEO of Heritage, added, “We are confident this move will be good for our Sioux City employees and customers. We’ll be leaving them in good hands. Levo is committing resources to grow and serve the Siouxland community. This is also a good transition for us, allowing Heritage to re-deploy our resources for continued growth of our digital banking and mortgage lending brands.”
“Levo means to lift up, and we are very focused on lifting up our community,” says Sommerfeld. “We have our own foundation that gave out over $50,000 last year. We pay employees to volunteer in the community – last year they volunteered more than 1300 hours. We support our community because our community makes us what we are.”
Levo was advised by Honigman LLP as legal counsel and Mercer Capital as financial advisor. Olsen Palmer LLC served as financial advisor to Heritage, while Ballard Spahr LLP served as legal counsel. The transaction has been unanimously approved by both Boards of Directors.
