Heritage Federal Credit Union and The Elberfeld State Bank have announced they have executed a definitive purchase agreement whereby Heritage Federal Credit Union would acquire the branches of The Elberfeld State Bank. The transaction remains subject to regulatory approvals, the approval of the shareholders of ESB Bancorp, Inc. (the sole shareholder of The Elberfeld State Bank), and other customary closing conditions. The combined financial institution expects to complete the integration during the first quarter of 2021.
Based upon current financials and location, Heritage Federal Credit Union would grow to have combined assets of approximately $810 million and have thirteen locations in the Evansville MSA.
David Milligan, Chief Executive Officer of Heritage, said: “We are excited for the opportunity to partner with The Elberfeld State Bank to further help our communities grow and flourish. We are truly honored that the Board of Directors and executive officers of the Bank would recommend our institution and our proposed combination to their shareholders. Serving the Bank’s customers, employees, and communities are of the highest importance to us. Heritage’s strong consumer loan and mortgage loan business will nicely complement the extensive commercial loan business that the Bank has been so successful in building over the years. We look forward to joining forces with Curtis Ritterling and the rest of the Bank’s team to make the people and communities we serve even more successful.”
Curtis Ritterling, Chief Executive Officer of the Elberfeld State Bank, said: "The partnership with Heritage will bring a wealth of expanded products and services to our customers, as well as continue the strong local community ties to the markets we serve. We are excited for the opportunities it will provide to our employees and we look forward to growing the combined organization with them.”
Heritage’s legal advisor was Dentons Bingham Greenebaum LLP. The Elberfeld State Bank’s investment banker was The Hovde Group and its legal advisor was Barnes & Thornburg LLP.