NEW BUFFALO — A South Bend-based credit union is in the process of acquiring the New Buffalo Savings Bank in the third quarter of 2019.
Teachers Credit Union, the largest credit union in Indiana, will pay $21 million for the bank.
TCU and New Bancorp, Inc, the holding company of New Buffalo Savings Bank, announced they signed a definitive purchase and assumption agreement whereby TCU will acquire the assets and assume the liabilities of New Buffalo Savings Bank.
New Buffalo Savings Bank, founded in 1921, has branches in New Buffalo, Sawyer and Three Oaks and had assets of $119.5 million as of Dec. 31, 2018.
The acquisition is pending regulatory approval, but was approved by the boards of both financial institutions.
“We are enthusiastic about our new partnership with TCU because of the expanded opportunities it brings to our customers, our employees and our community,” Richard Sauerman, president and CEO at New Bancorp, said in a news release. “TCU is a solid homegrown financial institution and this deal ensures that local banking will remain in our community.”
Sauerman said he appreciated the support of the bank’s shareholders.
According to a South Bend Tribune article Wednesday, the bank charter is expected to be dissolved when the transaction is completed, as each branch will become part of the credit union. TCU plans to retain all of the bank’s customers.
It’s rare for a credit union to buy a bank. However, Dan Rousseve, senior vice president at TCU, told the Tribune that the credit union pursued the deal because of the number of members that are centered in Berrien and Cass counties.
Because there is no overlap of branch offices between TCU and the New Buffalo bank, Rousseve doesn’t expect any consolidation as a result of the merger.
Paul Marsh, president and CEO at TCU, said the acquisition will allow the credit union to expand its footprint and better serve its members.
“We are excited to announce the acquisition of New Buffalo Savings Bank and look forward to welcoming their customers and employees into the TCU family,” Marsh said in the release. “…I look forward to a positive transition as the cultures of both organizations are strong, and we share a commitment to the community and the members and customers we serve.”
New Bancorp became the stock holding company of New Buffalo Savings Bank in connection with their mutual to stock conversion in 2015.
Following the acquisition, TCU will have 57 branches throughout Indiana and Southwest Michigan, with about 300,000 members and assets totaling about $3.2 billion.