August 19, 2021
To Our Valued Customers –
Lake Area Bank shareholders have entered into an acquisition agreement to sell to Royal Credit Union effective first quarter 2022. Although this was a difficult decision, we are excited to join a financial institution that aligns with our strong corporate values and commitment to customers and our communities.
Why have we made the decision to sell?
Lake Area Bank is a family-owned bank with a strong and dedicated shareholder group since 1985. It is time for the next journey. This sale provides opportunity for our organization to carry forward for years to come. Aligning with Royal Credit Union allows us to continue supporting our customers and communities as we have for over 100 years. We feel confident you will experience the same level of service you’ve come to expect with Lake Area Bank.
What does this mean for you?
As a current customer of Lake Area Bank, upon the sale in early 2022, you will become a member of Royal Credit Union. We hope to make this transition as seamless as possible. Royal Credit Union is a strong financial institution with a background in bank acquisitions and a solid understanding of the transition process. There will be some changes in the coming months, but we are committed to minimizing the impact to you and your accounts. Rest assured, we are still here and ready to assist you.
Additionally, Royal Credit Union is planning to purchase our existing Lake Area Bank real estate, further expanding their physical footprint in Minnesota. Because of this, we have every reason to believe they have intent to remain in our current communities.
What are the benefits to working with Royal Credit Union?
- Royal Credit Union is a strong and growing financial institution with values and a purpose consistent with ours. Founded in 1964, they demonstrate a powerful commitment to their communities, members and employees.
- Similar to a bank, credit unions are federally insured. Royal and nearly all credit unions are insured through NCUA (National Credit Union Administration).
- Credit union Members are owners of the credit union and have a say in how the credit union is operated. Members can vote at annual meetings, run for the Royal Credit Union Board of Directors, and serve on committees such as the Audit Committee and the Nominating Committee.
- Typically, credit unions charge their members fewer fees and lower loan interest rates – and pay higher rates on deposits. Royal has fewer fees than most institutions, even other credit unions, and their interest rates are among the best in our markets.
- Comparable to Lake Area Bank, Royal is deeply rooted in their communities. Similarly, Lake Area Bank’s core purpose has been to make a difference in people’s lives. Royal’s core purpose is to make a positive impact in the lives we touch. We believe you will continue to experience the same personal connections you value at Lake Area.
- With an asset size of over $3.5 billion, Royal Credit Union can provide expanded offerings in both business and personal banking accounts and services. Furthermore, you will have access to additional locations and benefits to becoming a member of Royal.
We encourage you to visit https://www.rcu.org/ to learn about Royal Credit Union. We are confident you will be pleased with how they operate and what they have to offer their members.
I understand you may have additional questions. Please do not hesitate to contact us and we will do our best to answer them. As the coming months unfold, we will continue reaching out with additional information.
You are, and will continue to be, a valued customer and we look forward to continuing to serve your financial needs for many years to come as a Royal Member.
Marc Campbell, CEO
Lake Area Bank