The $ 698 million Heritage Credit Union of Newburgh, Indiana said on Wednesday it has signed a definitive purchase agreement to buy the three branches of Elberfeld state bank for $ 82 million in Elberfeld, Id. ‘Indiana.
Financial terms of the deal were not disclosed.
Founded in 1905, the bank operates three branches in Elberfeld, Evansville and Hausbstadt, handling 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 a capital of 9.8 million dollars.
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The FDIC lists the bank’s asset concentration as an agricultural specialization, which includes banks with agricultural production loans as well as real estate loans secured by agricultural land for more than 25% of total loans and leases.
“Heritage’s strong consumer lending and mortgage business will perfectly complement the significant commercial lending business that the bank has managed to build over the years,” said David Milligan, President and CEO of Heritage . “We look forward to partnering with Curtis Ritterling (CEO of ESB) and the rest of the bank team to ensure the success of the people and communities we serve.
Fifteen employees work at the bank, according to the FDIC. Nearly 190 employees work at Heritage.
Based on current financial and location data, Heritage said its assets will grow to around $ 810 million and its branch network will grow from 10 to 13 across the Metro Evansville Statistical Area.
The transaction remains subject to the approval of regulators and shareholders of ESB Bancorp Inc ..
The combined financial institution plans to complete the integration in the first quarter of 2021, Heritage said.
This is the second Credit Union Bank buys in Hoosier state this year.
In June, the $ 635 million Crane Credit Union in Odon, Indiana signed a definitive deal to acquire the Community State Bank of Southwestern Indiana in Poseyville, valued at $ 89. , $ 6 million.
In April, the $ 4.2 billion Tinker Federal Credit Union in Oklahoma City has 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 a deal to buy Neighborhood National Bank for $ 221 million in Mora, Minn.