EVANSVILLE, Ind. – $1.5-billion Evansville Teachers FCU said it plans acquire $113-million American Founders Bank of Louisville, Ky.
The pace of CU acquisitions of banks appears to be heating up in 2018, as this makes the third such deal in less than three months.
The acquisition will allow ETFCU to offer additional branch locations in the Louisville, Ky., market as well as enhance its mortgage lending and deposit growth in the area, the credit union stated.
“In conjunction with our strategic business plan, we have been seeking to add several new branch offices in the Louisville market. We currently have two mortgage loan production offices in Louisville,” said Bill Schirmer, ETFCU president and CEO. “This alliance with American Founders Bank will enable us to better serve our existing members in this area in addition to offering our expansive checking and other deposit products to new members as well. The acquisition complements our long-term business strategy.”
“This transaction brings together the highly sophisticated and successful personal banking expertise of ETFCU with AFB’s strength in business and commercial banking,” said Barry Brauch, president and CEO of American Founders Bank. “We are pleased that our customers will get many improved services and that their deposits will continue to be protected to the very same level as always.”
American Founders Bank, which lost $6,000 last year according to FDIC data, has two locations in Louisville.
Currently, ETFCU has 193,000 members across five states.
“As a member-owned financial cooperative, we continue to strive to offer increased value to our members. Through this acquisition, the credit union will be in a better position to provide the benefits our members appreciate, as well as expand our value proposition to new members in this market,” said Schirmer.
Michael Bell, attorney and counselor Royal-Oak, Mich.-based Howard & Howard, who is representing Evansville Teachers, told CUToday.info is a previous report that he expected the pace of CU/bank purchases to quicken in 2018.
“These transactions continue to be recognized as a win for both CU buyers and bank sellers. The pace and frequency of these transactions is at an all-time high and rising,” said Bell, who has been part of 21 CU/bank deals, including three mergers of a bank into a credit union.