NEWBURGH, Ind.–Heritage Federal Credit Union said it has reached an agreement to purchase the branches of The Elberfeld State Bank in Elberfeld, Ind. The acquisition of the bank’s assets is just the latest of many CU/bank deals to take place in the state of Indiana.
The institutions said the transaction remains subject to regulatory approvals, the approval of the shareholders of ESB Bancorp, Inc. (the sole shareholder of The Elberfeld State Bank), and other customary closing conditions. The combined financial institution expects to complete the integration during the first quarter of 2021.
According to Heritage Federal, the acquisition will increase its assets to approximately $810 million and its total number of branches to 13. Elberfeld State Bank has a single branch.
“We are excited for the opportunity to partner with The Elberfeld State Bank to further help our communities grow and flourish,” said HFCU CEO David Milligan. “We are truly honored that the board of directors and executive officers of the bank would recommend our institution and our proposed combination to their shareholders. Serving the Bank’s customers, employees, and communities are of the highest importance to us. 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. We look forward to joining forces with (bank CEO) Curtis Ritterling and the rest of the bank’s team to make the people and communities we serve even more successful.”
Added Ritterling, "The partnership with Heritage will bring a wealth of expanded products and services to our customers, as well as continue the strong local community ties to the markets we serve. We are excited for the opportunities it will provide to our employees and we look forward to growing the combined organization with them.”
Heritage FCU said its legal advisor was Dentons Bingham Greenebaum LLP. The Elberfeld State Bank’s investment banker was The Hovde Group and its legal advisor was Barnes & Thornburg LLP.
Indiana has been something of a hot spot for credit union acquisitions of bank assets. Among the acquisitions: in June, Crane Credit Union announced it was purchasing Community State Bank of Southwestern Indiana, Three Rivers FCU in Fort Wayne, has purchased West End Bank, Indiana Members Credit Union acquired Commerce Bank, and Teachers Credit Union in South Bank bought new Buffalo Savings Bank.