State of Indiana. (Source: Shutterstock)The $699 million Crane Credit Union in Odon Ind., said Wednesday it plans to buy the $73.6 million Our Community Bank in Spencer, Ind., for approximately $13 million in cash.
This is the credit union’s second bank acquisition deal. In June, Crane signed a definitive agreement to acquire the $90.8 million Community State Bank of Southwestern Indiana in Poseyville, which is expected to close in the fourth quarter.
The credit union said it signed a definitive purchase and assumption agreement to acquire the assets and assume certain liabilities of Our Community Bank. The bank’s holding company is Home Financial Bancorp, which is publicly traded on the OTCPK exchange.
Under the terms of the purchase and assumption agreement, Home Financial estimates its shareholders will receive between $10.75 and $11.25 in cash consideration for each outstanding share of Home Financial common stock. This range represents 137% to 143% of Home Financial’s book value on June 30. As of that date, the bank’s holding company reported 1,155,594 shares outstanding.
Founded in 1911, Our Community Bank’s 21 employees operate two branches and serve approximately 5,500 customers.
Specializing in mortgage lending, the bank posted total deposits of $56 million, $187,000 in net income and capital of $8.5 million at the end of the second quarter, according to the bank’s Consolidated Report of Condition and Income filed with the FDIC.
The transaction has been unanimously approved by the board of directors of both institutions and is expected to close in 2021, subject to customary closing conditions, including the approval of Home Financial’s shareholders and regulatory agencies.
This is the fourth credit union bank acquisition deal this year. In 2019, there were 14.
In April, the $4.2 billion Tinker Federal Credit Union in Oklahoma City agreed to acquire substantially all of the assets and operations of the $285 million Prime Bank in Edmond, Okla. And in February, the $5.6 billion Wings Financial Credit Union in Minneapolis reached an agreement to buy the $221 million Neighborhood National Bank in Mora, Minn.