Another former mutual is being sold to a credit union
3Rivers Federal Credit Union in Fort Wayne, Ind., has agreed to buy the assets and liabilities of West End Bank in Richmond, Ind.
West End's shareholders should receive $34.91 to $36.81 in cash for each share they own. Based on West End's outstanding shares on May 15, the deal would be valued at $37.2 million to $39.2 million.
The deal is expected to close in early 2020. Once that happens, the bank and its holding company, the $299 million-asset West End Indiana Bancshares, will settle any remaining obligations and distribute any remaining cash to shareholders.
It is unclear how a liquidation account, which was created in 2012 when the bank’s prior federal mutual holding company converted to stock ownership, will be treated since a credit union hasn’t bought the assets and liabilities of a former mutual before under current federal rules, West End said in a Thursday press release.
Corporate America Family Credit Union in Elgin, Ill., agreed in July to buy Ben Franklin Bank in Illinois, another former mutual; that deal is also expected to close in early 2020. A record number of banks have agreed to sell to credit unions this year.
The $1.1 billion-asset 3Rivers has 16 branches in seven counties in northwest Indiana and northwest Ohio that serve 82,000 members. The deal will increase the credit union’s membership to 106,000.
West End has four branches in eastern Indiana.
“This acquisition will allow us to expand our footprint to serve more people and communities in Indiana, and it will result in expanded product, service and technology offerings for West End Bank’s customers as well,” Don Cates, 3Rivers’ president and CEO, said in the press release. “We look forward to getting to know and investing in Wayne and Union Counties, as we begin the transition process.”