Beacon Credit Union to acquire Mid-Southern Bank
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Wabash-based Beacon Credit Union is adding to its portfolio by acquiring substantially all of the assets of Mid-Southern Savings Bank, headquartered in the Washington County city of Salem.
Mid-Southern said in a news release that the purchase and assumption (P&A) agreement is valued at just over $45 million in cash.
Mid-Southern Bank operates three branches in Washington, Orange and Lawrence counties, as well as two loan production offices in New Albany and Louisville. The bank had approximately $265 million in assets as of Sept. 30, 2023.
Beacon said the deal is its first acquisition of a community bank. The combined organization will have approximately $1.7 billion in assets with 22 retail member center locations and seven LPOs.
“We’re excited to bring the benefits of Beacon Credit Union to Mid-Southern Savings Bank’s customers and communities,” Beacon CEO Dustin Cuttriss said in a news release. “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.”
The P&A agreement has been unanimously approved by the boards of Mid-Southern Bank, its parent company, Mid-Southern Bancorp, and Beacon Credit Union. The deal, which still requires approval by Mid-Southern Bancorp’s shareholders, as well as regulatory approvals, is expected to close in the fourth quarter.
Beacon said it intends to keep all Mid-Southern bank branches and LPOs open after the deal is completed.
As part of the agreement, Mid-Southern Bank will retain $10 million of its cash. Once the P&A agreement has been finalized, the bank said it will liquidate and distribute its remaining assets to Mid-Southern Bancorp, which will then dissolve and distribute the assets to its shareholders.
Currently, the shareholders are estimated to receive between $15-$17 in cash for each share of Mid-Southern Bancorp common stock owned. That distribution is expected to take place within several months of the acquisition being completed.
Mid-Southern Bank CEO Alex Babey will join Beacon Credit Union in a transitional consulting role, while Executive Vice President Jimmy King will be named business development officer for the Louisville market. Additionally, Chief Financial Officer Erica Schmidt will be retained in an operational leadership role in Salem.