Crane Credit Union (CCU), an Odon, Indiana headquartered credit union, has signed an agreement with Home Financial Bancorp to acquire its subsidiary Our Community Bank (OCB).
As per the deal, CCU will acquire the assets and certain liabilities of OCB. Under the terms of the acquisition, Home Financial estimates that its shareholders will receive between $10.75 and $11.25 in cash for each share held in OCB.
The price represents a premium between 137% and 143% of Home Financial’s book value as of the end-June 2020.
CCU president and CEO Kevin Sparks said: “We look forward to assisting the Our Community Bank team in Spencer and Cloverdale in building on their existing customer relationships.
“By teaming with OCB, we will expand our services to Owen and Putnam Counties, which fit within our existing market areas stretching from the Greater Indianapolis area down to Evansville.”
Founded in 1955 on Crane Naval Surface Warfare Center, Crane Credit Union offers full array of products and services. With 20 locations across 10 counties across Indiana, the credit union has nearly $635m in assets.
OCB’s locations will operate as CCU offices after completion of deal
The deal has been approved by the boards of both the companies. Subject to customary closing conditions and regulatory approvals, it is expected to be closed next year.
After the deal is closed, all of OCB’s locations will be operated as CCU offices and its customers will become CCU members with full access to the credit union’s suite of consumer and commercial services, along with its lending products and programmes.
Our Community Bank president and CEO Kurt Rosenberger said: “We are excited to join Crane Credit Union because of the expanded opportunities it brings to our customers, our employees, and our communities.
“CCU has the financial strength, systems infrastructure, and expanded products to help us better serve our current and potential customers. Most importantly, CCU and OCB fit culturally and philosophically.”
In June, the credit union had agreed to acquire Community State Bank of Southwestern Indiana, an Indiana state-chartered bank in Posey County, bringing its total number of branches to 20.
