Indiana credit union buying Elberfeld State Bank
Heritage Trust Federal Credit Union in Newburgh, Ind., has agreed to buy the assets and assume the liabilities of Elberfeld State Bank in Indiana.
The $699 million-asset Heritage said in a press release Thursday that it will have 13 branches in the Evansville, Ind., area when the deal closes. It did not disclose the price of the deal.
"The partnership with Heritage will bring a wealth of expanded products and services to our customers, as well as continue the strong local community ties to the markets we serve,” Burtis Ritterling, Elberfeld State's CEO, said in the release.
“We are excited for the opportunities it will provide to our employees and we look forward to growing the combined organization with them," Ritterling added.
The integration is expected to be completed during the first quarter of 2021.
Hovde Group advised Elberfeld State.
First-quarter earnings at the $82 million-asset Elberfeld State fell 38% from a year earlier, to $110,000, according to data from the Federal Deposit Insurance Corp. The credit union's net income in the quarter fell by 7%, to just under $1.1 million.
It's the fourth deal announced this year in which a credit union agreed to acquire a bank, or half the number of such deals announced through early July 2019. The coronavirus has slowed the pace of these transactions, and a handful of bank mergers have been called off as a result of the pandemic.