Teachers Credit Union, which has branches in Gary, Hammond, Whiting, Chesterton and Valparaiso, has reached an agreement to buy New Buffalo Savings Bank in an all-cash deal valued at $21.3 million.
The South Bend-based bank, which has a half dozen branches in Northwest Indiana, will acquire New Buffalo Savings Bank, which has assets of $119.5 million and branches in New Buffalo, Sawyer and Three Oaks just across the state line in southwest Michigan. Once the deal is finalized, Teachers Credit Union will end up with $3.2 billion in assets and 57 branches.
“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,” Teachers Credit Union President and CEO Paul Marsh said. “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. 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 Buffalo Savings Bank shareholders will get $28.42 per share, or up to 128.5% of the book's tangible book value.
The bank has served Harbor Country across the border in Michigan since 1921. Its branches will be converted to Teachers Credit Union branches when the deal is finalized, and all its customers will become members of TCU.
“We are enthusiastic about our new partnership with TCU because of the expanded opportunities it brings to our customers, our employees and our community,” said Richard Sauerman, president and CEO of New Bancorp Inc. and New Buffalo Savings Bank. “TCU is a solid homegrown financial institution and this deal ensures that local banking will remain in our community. We are also appreciative of the support from our shareholders, and we believe that this transaction will be beneficial for them.”
Teachers Credit Union is Indiana's largest credit union with more than 300,000 members.