WABASH, IN (January 26, 2024) – The Board of Directors of Beacon Credit Union (“BCU”) announced the execution of a definitive purchase and assumption agreement whereby BCU will acquire substantially all of the assets and assume substantially all of the liabilities, including the deposits, of Mid-Southern Savings Bank (“MSB”).
MSB is a federally chartered savings bank headquartered in Salem, Indiana, approximately 40 miles northwest of Louisville, Kentucky. The Bank conducts business from its main office in Salem and through its branch offices located in Mitchell and Orleans, Indiana and loan production offices (LPOs) located in New Albany, Indiana and Louisville, Kentucky.
The Boards of Directors of both financial institutions have unanimously approved the transaction, which will mark BCU’s first acquisition of a community bank and continues its strategic expansion into southern Indiana. The combined organization will have approximately $1.7 billion in assets across its Indiana branch footprint with a total of 22 retail Member Center locations and 7 LPOs.
“We’re excited to bring the benefits of Beacon Credit Union to Mid-Southern Savings Bank’s customers and communities” stated Dustin Cuttriss, Beacon Credit Union President and CEO. “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. We extend a warm welcome to the customers of Mid-Southern Savings Bank.”
Upon completion of the transaction MSB President/CEO, Alexander Babey will be joining BCU in a transitional consulting role, James (“Jimmy”) King will be named Business Development Officer, Louisville Market, and Erica Schmidt will be retained in an operational leadership role in Salem, IN. BCU intends to keep all of MSB’s branches and loan production offices open following completion of the transaction.
The transaction is contingent on approval by the shareholders of MSB and is expected to be completed in the third or fourth quarter of 2024, subject to all required regulatory requirements and approvals and the fulfillment of all customary closing conditions.
BCU is being advised by the investment banking firm Donnelly Penman & Partners, Inc. and the law firm Barnes & Thornburg LLP. MSVB and MSB is being advised by the investment banking firm Piper Sandler & Co. and the law firm Luse Gorman, PC.
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About Beacon Credit Union
Beacon Credit Union was founded in 1931 by a group of 75 farmers in Wabash, Indiana. Since then, BCU has grown to become one of Indiana’s largest credit unions with approximately $1.5 billion in assets, over twenty office locations throughout Indiana, and services over 47,000 members located throughout 50 counties in Indiana. BCU offers traditional financial services as well as non-traditional ones, including investment and insurance services. BCU’s 93-year history shows a strong commitment to working with the communities in which it serves. BCU has the banking infrastructure and sophistication that rivals any community or regional bank. BCU focuses on consistently delivering friendly, superior service to its members with attractive, value-enhancing banking products and services.