Heritage FCU plans to complete bank acquisition on March 31

State of Indiana. (Source: Shutterstock)

After securing regulatory and shareholder approvals, the $ 781 million Heritage Federal Credit Union of Newburgh, Indiana announced Monday that it plans to complete the acquisition of State Bank Elberfeld for $ 86, $ 5 million on March 31.

Heritage said its assets will grow to around $ 877 million and its branch network will grow from 10 to 13 across the metro Evansville area.

Founded in 1905, the bank operates three branches in Elberfeld, Evansville and Hausbstadt, handling total deposits of $ 75.4 million at the end of 2020, according to the FDIC.

At the end of the fourth quarter of 2020, ESB posted net income of $ 757,000 and an ROA of 0.89%. The bank recorded $ 10.2 million in capital at the end of last year.

The FDIC lists the bank’s concentration of assets as an agricultural specialization, which includes financial institutions with agricultural production loans as well as real estate loans secured by agricultural land for more than 25% of total loans and leases.

The financial terms of this acquisition were not disclosed during the announcement last July. It was one of six proposed credit union bank purchase agreements announced in 2020, up from 14 in 2019.

So far this year, only one draft credit union bank acquisition agreement has been signed.

In January, the $ 6.7 billion Wings Financial Credit Union in Apple Valley, Minnesota agreed to acquire the $ 72.3 million from Brainerd Savings & Loan in Brainerd, Minnesota. Minnesota. The transaction, which requires approval from state and federal regulators, is expected to be finalized in May. 31.

Last year, Wings Financial has not completed its acquisition project to buy the $ 260 million Neighborhood National Bank in Mora, Minnesota. The credit union declined to comment on the reasons the bank’s purchase was not finalized.

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