WABASH, Ind.–In the fourth such deal this year, Beacon Credit Union said it plans to acquire Mid-Southern Savings Bank of Salem, Ind.
Beacon will pay approximately $45 million for the bank, although the final price will be adjusted based on the bank’s equity at deal closing, the credit union said in a statement announcing the deal.
The deal is expected to be completed in the third or fourth quarter of 2024.
The $266-million Mid-Southern would be the $1.5-billion Beacon’s first community bank acquisition as it expands across southern Indiana. The bank is headquartered approximately 180 miles south of the credit union.
“This acquisition is a win-win for everyone involved as it provides Beacon’s competitive services and products to new communities,” Beacon CU CEO Dustin Cuttriss said in a statement.
According to the credit union, upon completion of the transaction, Mid-Southern CEO Alexander Babey will join Beacon in a transitional consulting role.
The credit union said it plans to keep open all three of Mid-Southern's branches and its three loan production offices after the deal closes.
About the CU, Bank
Beacon, which was the first privately insured credit union to be OK’d for membership in the Home Loan Bank system in 2016, also acquired an industrial loan and investment company, Midwest AG Finance, in 2015, as CUToday.info reported here.
Beacon Credit Union reported $3.2 million in net income through Q3 of 2023, according to call report data from American Share Insurance.
Mid-Southern Bank posted $1.6 million in income through June 30, 2023, according to S&P Global Market Intelligence.
Other Deals to Date in 2024
As CUToday.info reported earlier, other bank acquisitions announced by credit unions to date in 2024 include:
- The $2.9-billion Advia Credit Union, Kalamazoo, Mich., is reaching into Illinois to purchase the $255-million NorthSide Community Bank.
- The $7-billion Hudson Valley Credit Union is purchasing the $593-million Catskill Hudson Bank in Kingston, N.Y.
- The $11.8-billion Global FCU in Anchorage, Alaska is buying the $1.5-billion First Financial Northwest Bank in Renton, Wash. for $231.2 million.
- In addition, the $2.98-billion All-In Credit Union in Daleville, Ala. is buying five branchesand the book of business from Louisville, Ala.-based 22nd State Bank. As of October 31, 2023, the deposit and loan balances associated with the transaction were approximately $145 million and $130 million, respectively.
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