Source: Shutterstock.The $698 million Heritage Credit Union in Newburgh, Ind., said Wednesday it executed a definitive purchase agreement to buy all three branches of the $82 million Elberfeld State Bank in Elberfeld, Ind.
Financial terms of the deal were not disclosed.
Founded in 1905, the bank operates three branches in Elberfeld, Evansville and Hausbstadt, managing total deposits of $71.3 million.
At the end of the first quarter, ESB posted net income of $110,000 and an ROA of 0.54%, according to the FDIC. The bank manages $9.8 million in capital.
The FDIC lists the bank’s asset concentration as agricultural specialization, which includes banks with agricultural production loans plus real estate loans secured by farmland in excess of 25% of total loans and leases.
“Heritage’s strong consumer loan and mortgage loan business will nicely complement the extensive commercial loan business that the bank has been so successful in building over the years,” David Milligan, Heritage president/CEO, said. “We look forward to joining forces with Curtis Ritterling (ESB CEO) and the rest of the bank’s team to make the people and communities we serve even more successful.”
Fifteen employees work at the bank, according to the FDIC. Nearly 190 employees work at Heritage.
Based on current financials and location, Heritage said its assets would grow to about $810 million and its branch network would increase from 10 to 13 throughout the Evansville metropolitan statistical area.
The transaction remains subject to approvals from regulators and ESB Bancorp Inc. shareholders.
The combined financial institution expects to complete the integration during the first quarter of 2021, Heritage said.
This is the second credit union bank buy deal this year in the Hoosier State.
In June, the $635 million Crane Credit Union in Odon, Ind., signed a definitive agreement to acquire the $89.6 million Community State Bank of Southwestern Indiana in Poseyville.
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.