Evansville Teachers Federal Credit Union (ETFCU), a $1.3 billion institution based in Evansville, Ind. has announced plans to purchase Owensboro, Ky.-based First Liberty Financial Mortgage, effective November 15.
First Liberty is a regional mortgage company with twelve locations across four states. ETFCU's acquisition of First Liberty will allow the local credit union to "more effectively" offer its mortgage products in "various markets throughout the region and beyond" as First Liberty becomes a division of the credit union.
Until now, ETFCU's mortgage lending was "relatively limited" to the tri-state area, but the First Liberty acquisition will give ETFCU mortgage offices in six new markets throughout Kentucky, one in Tennessee, two in Alabama, and one in Mississippi.
"In conjunction with our strategic business plan, we have been seeking to add to our mortgage loan production offices in several key markets within Kentucky," Bill Schirmer, ETFCU president and CEO said in a statement. Acquiring First Liberty, he said, "will enable us to better serve our existing members in these markets in addition to offering our expansive mortgage products to new members as well." Schirmer added that the acquisition "complements the long term business strategy of both of our established organizations."
ETFCU said it expects that the deal will nearly double its mortgage production of $30 million to $55 million per month.
Schirmer also said the acquisition will also benefit current ETFCU members by providing additional resources to "further enhance" their flagship premium checking accounts.
Michael Bell, an attorney at Howard and Howard, a legal firm based in Royal Oak, Mich., which represented ETFCU, told Credit Union Journal this transaction is "unique."
"This has happened before but is certainly not commonplace," Bell stated. "This is a thoughtful strategy to help spur non-organic growth. ETFCU is a strategic thinking, well capitalized credit union. Additional non-organic growth opportunities would be welcomed."
