Bank / Credit Union

Crane Credit Union buying Our Community Bank

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August 20, 2020

Crane's Credit Union in Odon, Indiana, plans to buy Our Community Bank in Spencer, Indiana, for approximately $13 million in cash. The bank has 21 employees and operates two branches that serve approximately 5,500 customers in the area, according to a CUTimes report.

The credit union signed a definitive purchase and assumption agreement to acquire the assets and assume certain liabilities of the bank. The bank's holding company is Home Financial Bancorp, which estimates its shareholders will receive between $10.75 and $11.25 in cash consideration for each outstanding share of Home Financial common stock, according to the report. This range represents 137% to 143% of Home Financial's book value on June 30.

Founded in 1911, Our Community Bank specializes in mortgage lending. The bank posted total deposits of $56 million, $187,000 in net income, and capital of $8.5 million at the end of the second quarter, according to the bank's consolidated report of condition and income filed with the FDIC.

This will be Crane's second bank acquisition deal. It signed a definitive agreement to acquire Community State Bank of Southwestern Indiana, which is expected to close in the fourth quarter.