Beacon CU Plans to Acquire Mid-Southern Savings Bank for $45.1 Million
The proposed bank buy would expand the credit union’s market presence throughout southern Indiana.
The $1.5 billion Beacon Credit Union in Wabash, Ind., is planning to acquire the $265 million Mid-Southern Savings Bank in Salem, Ind., for an estimated $45,198,789 in cash.
Mid-Southern Bancorp Inc., the holding company for Mid-Southern Savings Bank, and Beacon signed a definitive purchase and assumption agreement last week, according to a joint prepared statement. If approved by regulators and shareholders, the proposed acquisition agreement is expected to close during the fourth quarter.
Founded in 1891, Mid-Southern’s 44 employees operate three branches and two loan production offices that serve approximately 7,500 customers.
The bank manages $206 million in deposits, $143 million in loans and $28.9 million in capital, according to its third quarter FDIC Call Report. At the end of that quarter, Mid-Southern posted income of $1.5 million.
“This acquisition is a win–win for everyone involved as it provides Beacon’s competitive services and products to new communities and provides a more expansive footprint for our Southern Indiana market,” Beacon President/CEO Dustin Cuttriss said. “We extend a warm welcome to the customers of Mid-Southern Savings Bank.”
This is the credit union’s first bank acquisition deal.
With more than 350 employees, Beacon operates 19 retail member centers and five loan production offices in 50 counties throughout the Hoosier State serving more than 47,000 members.
“The synergy created by combining these two companies coupled with the financial strength of the combined institution will assure that our customers, our employees and our communities have expanded opportunities and benefits far into the future,” Mid-Southern Bank President/CEO Alexander (Alex) G. Babey said.
The combined financial institutions would manage approximately $1.7 billion in assets with 400 employees, 22 branches and seven loan production offices, which would serve about 55,000 members.
If the proposed transaction is approved by regulators and shareholders, Alex Babey plans to join Beacon in a transitional consulting role.