ODON, Ind.—The $700-million Crane Credit Union here reported it intends to purchase $74-million Our Community Bank, based in Spencer, Ind.
CCU said it will acquire the assets and assume certain liabilities of OCB via an all-cash transaction.
Under the terms of the purchase and assumption agreement, Home Financial, the holding company for OCB, 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, 2020. The amount of per share consideration is subject to variation based on, among other things, OCB’s equity at closing, the amount of corporate level taxation of such transaction, any liabilities retained by Home Financial, costs related to the dissolution of OCB and Home Financial, and future operating results, the credit union reported.
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, CCU stated.
“We look forward to assisting the Our Community Bank team in Spencer and Cloverdale in building on their existing customer relationships,” said Kevin Sparks, president and CEO of CCU. “By teaming with OCB, we will expand our services to Owen and Putnam Counties, which fit within our existing market areas stretching from the Greater Indianapolis area down to Evansville.”
“We are excited to join Crane Credit Union because of the expanded opportunities it brings to our customers, our employees, and our communities,” said Kurt Rosenberger, president and CEO of Our Community Bank. “CCU has the financial strength, systems infrastructure, and expanded products to help us better serve our current and potential customers. Most importantly, CCU and OCB fit culturally and philosophically.”
CCU recently announced the acquisition of Community State Bank of Southwestern Indiana in Poseyville, Ind., which has $90 million in assets.