NEW BUFFALO — South Bend, Ind.-based Teachers Credit Union plans to acquire New Bancorp Inc., the parent company of New Buffalo Savings Bank.
In the latest deal between a large credit union and a small community bank, Teachers Credit Union — the largest credit union based in Indiana — and New Buffalo Savings Bank said last week they signed a definitive agreement for a cash deal valued at $21.3 million.
Under the deal, Teachers Credit Union will acquire the assets and assume the liabilities of New Buffalo Savings Bank for $28.42 per share. The deal should close in the second half of this year and is subject to approval by regulators and shareholders of New Bancorp (OTC: NWBB).
“TCU is a solid home-grown financial institution and this deal ensures that local banking will remain in our community,” Richard Sauerman, the president and CEO of New Bancorp, said in a statement. “We are also appreciative of the support from our shareholders, and we believe that this transaction will be beneficial for them.”
New Buffalo Savings Bank has three offices in Berrien County with $119.5 million in total assets, according to its latest financial report the FDIC.
Teachers Credit Union has 53 offices in Indiana, and one office in Niles in Southwest Michigan. The credit union had nearly 301,000 members as of Dec. 31, 2018 with $3.17 billion in total assets and $19.3 million in net income, according to a quarterly financial report filed with the National Credit Union Administration. The credit union had $2.66 billion in total loans, including $342.7 million in total commercial loans.
“This acquisition will allow us to expand our footprint and better serve our members in southwestern Michigan and it will result in better banking access for New Buffalo Savings Bank’s customers as well,” TCU President and CEO Paul Marsh said in a statement. “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.”
Keefe, Bruyette, & Woods Inc. and the law firm Luse Gorman PC represent New Bancorp in the deal. Boenning & Scattergood Inc. and Krieg DeVault LLP represent Teachers Credit Union.
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