The $1.7 billion Royal Credit Union said last week that it hasentered into a definitive agreement to acquire the Apple Valley,Minn.-based branch of the $497 million Deerwood Bank.

This purchase shows that the Eau Claire, Wis.-based cooperative is continuing to expand itspresence in neighboring Minnesota. In April, Royal signed adefinitive agreement to buy Capital Bank in St. Paul, Minn., whichis expected to be completed in the second half of the year.

Royal said in a prepared statement that it will purchase assetsof the branch and assume its deposits. Financial terms of theacquisition were not disclosed.

Deerwood Bank will retain ownership of all of itsremaining 11 locations in Minnesota.

Pending customary closing conditions, includingobtaining regulatory approval, the completion of the branchtransaction is expected to occur in the second half of2016.

“We are excited to be expanding our office network to serve newand existing members in the Minneapolis-Saint Paul metropolitanarea,” Royal President/CEO Rudy Pereira said. “Deerwood Banktakes pride in its commitment to community and that made theacquisition a good fit for our credit union. Royal is a valuesbased company that puts its members first and supports thecommunities it serves.”

Deerwood Bank said the Apple Valley office was added as part ofa merger with American Bank of St. Paul in 2015.

“Going forward, this transaction will further enable DeerwoodBank to focus on the St. Paul and Greater East Metro Markets withwhich we have a long and rich history,” John Ohlin, CEO of DeerwoodBank, said.