Southern Indiana Business Report
SALEM – Mid-Southern Savings Bank, headquartered in Salem, has entered a definitive purchase agreement with Beacon Credit Union.
Mid-Southern said in a news release that the purchase and assumption (P&A) agreement is valued at just over $45 million in cash.
In addition to the main office in Salem, Mid-Southern operates branches in Mitchell and Orleans and has loan production offices in New Albany and Louisville.
Beacon Credit Union was founded in 1931 in Wabash. The P&A transaction will mark Beacon Credit Union’s first acquisition of a community bank and continues its 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 loan production offices.
Beacon Credit Union offers traditional financial services as well as non-traditional ones, including investment and insurance services.
“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.”
“We are thrilled about our new partnership with Beacon Credit Union. We believe it continues our commitment to enhance shareholder value. The synergy created by combining these two companies coupled with the financial strength of the combined institution will assure that our customers, our employees and our communities have expanded opportunities and benefits far into the future,” said Alexander (Alex) G. Babey, president and CEO of Mid-Southern Bank. “With a 93-year history and as one of Indiana’s largest credit unions, Beacon is a proven leader in providing the highest level of financial services, while also sharing our commitment to strong community support.”
The P&A Transaction was unanimously approved by the boards of directors of Mid-Southern Bancorp, Mid-Southern Bank and Beacon Credit Union and is expected to close in the fourth quarter of this year. Mid-Southern Bancorp’s shareholders will vote on the P&A transaction and the dissolution. Mid-Southern Bancorp, as the sole shareholder of Mid-Southern Bank, will vote on the liquidation.
Mid-Southern Bancorp’s shareholders are currently estimated to receive in the dissolution between $15.00 and $17.00 in cash in exchange for each share of Mid-Southern Bancorp common stock owned (the “per share consideration”). Currently, Mid-Southern Bancorp has 2,885,039 shares of common stock outstanding.
According to the release, it is expected that Babey will join Beacon Credit Union 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. Beacon Credit Union intends to keep all of Mid-Southern Bank’s branches and LPOs open following completion of the sale.
About Beacon Credit Union
Since its founding by a group of 75 farmers in Wabash, Indiana, Beacon Credit Union has grown to become one of Indiana’s largest credit unions with 19 retail member centers and five loan production offices (“LPOs”) throughout 50 counties in Indiana and services more than 47,000 members. As of Sept. 30, 2023, Beacon Credit Union had over $1.5 billion in assets, nearly $1 billion in loans, and over $1.2 billion in member shares and deposits.Â
About Mid-Southern Bancorp and Mid-Southern Bank
Mid-Southern Bancorp is the holding company of Mid-Southern Bank. As of Sept. 30, 2023, Mid-Southern Bank had approximately $265 million in assets, $144 million in loans, and $206 million in deposits across its three branches in southern Indiana.