Credit unions announced two deals for Illinois community banks in the first three days of June, making nine announcements so far this year.

Credit union-bank M&A could top record

At their current pace, 2022 credit union-bank deal announcements are on track to surpass the record 13 announcements made in both 2021 and 2019, excluding terminations.

The nine bank targets in 2022 reported an aggregate $3.98 billion in assets in the quarter prior to deal announcement, second only to 2021's $5.96 billion, according to S&P Global Market Intelligence data.

Illinois credit unions target in-state banks

On June 3, Rantoul, Ill.-based Credit Union 1 announced it would acquire Gurnee, Ill.-based Northside Community Bank, a move that will help it expand its commercial lending capabilities.

Once Credit Union 1 acquires Northside's four Illinois branches, the credit union will have 15 branches in Illinois, one in Nevada and one in Indiana.

The credit union consolidated two of its three Nevada branches in October 2021 and closed another branch in Danville, Ill., in February.

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Two days earlier, on June 1, Joliet, Ill.-based NuMark CU announced its deal for Earlville, Ill.-based Pioneer State Bank, giving it four new branches west of Chicago.

At the end of March, NuMark reported just $623.8 million in assets, making it the eighth-smallest credit union to announce a bank deal since the beginning of 2015. In that time, there have been 60 credit union-bank acquisitions announced, excluding terminations.

Illinois could become most-targeted state

With the two early-June deals, Illinois banks have now been targeted by credit unions nine times since the beginning of 2015, excluding terminations. Only Florida has more, at 13.

Since the beginning of 2021, credit unions have announced deals for six Illinois banks, compared to only three for Florida. Illinois also has more than five times the small bank targets as Florida: It has 331 commercial banks or thrifts — excluding foreign banking organizations and nondepository trusts — reporting less than $1 billion in assets as of March 31, compared to 64 in the Sunshine State.