ODON, Ind. – The $659-million Crane Credit Union intends to purchase $89-million Community State Bank of Southwestern Indiana, based in Poseyville, the CU announced.
The purchase will bring CCU’s total number of branches to 20.
Established in 1905, Community State Bank of Southwestern Indiana has six branches in Poseyville, Cynthiana, Mount Vernon, St. Wendel, St. Phillip and New Harmony. All six branches will continue to operate as branches of Crane Credit Union after completion of the transaction.
The bank made approximately $1 million in 2019, according to FDIC data. The price of the deal was not disclosed,
Serving Posey County
The transaction is expected to close later this year.
“We are excited to announce the acquisition of Community State Bank of Southwestern Indiana and we look forward to welcoming their customers and employees to Crane Credit Union,” said CCU President and CEO of Kevin Sparks. “This acquisition exemplifies our commitment to Southwestern Indiana and we are eager to begin serving the communities of Posey County.”
“We at CSB are very proud of our dedicated staff, as well as the many valued clients that we have served through the years,” said CSB President Steve Bennett. “This partnership with Crane Credit Union will provide even more products and support for our customers and additional opportunities for our staff.”
“Our partnership with Community State Bank of Southwestern Indiana represents a strategic opportunity for Crane to expand our community-focused, member-centric business model into the Southwestern Indiana market,” said Gary E. Gray, Jr., chairman of Crane Credit Union. “CSB has built a solid community banking franchise in this market upon which Crane plans to build by offering additional products and services to CSB’s current and prospective clients.”
COVID-19 Not In The Way
Michael Bell, an attorney with Royal-Oak Mich.-based Howard & Howard who pioneered credit union acquisitions of banks, said the acquisition by Crane CU is a sign the pandemic's impact on these agreements is lessening. Bell, who has been involved in more than 30 credit union acquisitions of banks, last month told CUToday.info the health crisis might slow these deals for a while.
"Covid-19 may have slowed the pace but it hasn't stopped these deals, and there is tremendous pent-up demand," said Bell. "This transaction is a perfect example of the positives of these agreements. The seller and all it’s constituencies get a win and the buyer gets the same. The transactions are relevant for community banks of all sizes. When the pandemic dust settles, get ready for a busy time.