NEW BUFFALO, Ind.–Indiana’s largest credit union is looking to expand further into multiple contiguous states to become a “Midwest powerhouse,” according to a new report.
As CUToday.info reported here, in April Teachers Credit Union acquired New Bancorp, Inc., the holding company for New Buffalo Savings Bank. New Buffalo operated three bank branches in New Buffalo, Sawyer and Three Oaks, Michigan and had $119.5 million in assets as of Dec. 31, 2018. The acquisition increased the TCU’s total number of branches to 57 and total assets to approximately $3.2 billion.
Teachers Credit Union President and CEO Paul Marsh told MiBiz.com the CU had been actively looking to extend its footprint and that New Buffalo Savings Bank offered a “great fit” culturally and geographically for TCU, which now aims to reach further into the state.
“This is just a natural progression for us into Michigan,” Marsh told MiBiz.com. “I see expansion farther into Michigan.”
Surrounding States
According to the report, Teachers CU is looking to grow strategically into contiguous states surrounding Indiana, including Michigan, Ohio, Kentucky and maybe Illinois, in addition to more expansion in the Hoosier State said.
“He views TCU ‘as a Midwest powerhouse and we just continue expanding our footprint,’” MiBiz.com reported. Future market entries in Michigan for TCU could include the Michigan markets of Grand Rapids and Kalamazoo.
Marsh told MiBiz.com that while TCU does not have specific targets for Michigan, he wants to double the credit union’s overall footprint within 10 years. Michigan ultimately could account for one-third to 40% of the credit union’s overall business, he told the publication.
“I see it being a healthy part of our business,” Marsh said. “I see some real opportunities.”
TCU recorded $4.2 million in net income for the first quarter and $24.2 million for all of 2019, according to NCUA data.
Expansion Plans
In terms of how TCU plans to expand, Marsh told MiBiz.com growth could occur by acquisition, buying branches from another financial institution, or new office development.
“There’s no one size fits all,” he told the publication of TCU’s approach to expansion. “There’s a lot of different opportunities.”