A local bank has agreed to buy a competitor's mutual thrift branch.
National City Bank of Evansville agreed to acquire First Federal Savings Bank's Mount Vernon, Ind., facility and its $5.2 million of deposits. First Federal, which is also based in Evansville, will retain the branch's loan portfolio.
Other terms of the deal were not disclosed.
"It's a pretty inexpensive way to get into the (Mount Vernon) market," said Roger M. Duncan, executive vice president of National City.
National City Bank, a subsidiary of $1.1 billion-asset National City Bancshares, Evansville, plans to take over the branch's operations next month. National City will introduce several products and plans to remodel the branch to include a drive-up, 24-hour automated teller machine.
The acquisition would bring National City Bank's branch total to 11.