Beacon Credit Union in Wabash, Ind., has agreed to buy substantially all of the assets and liabilities of Mid-Southern Savings Bank in Salem, Ind.
The $1.5 billion-asset credit union said in a press release that it will pay at least $43 million in cash for the $265 million-asset Mid-Southern, subject to adjustment based on the bank’s total equity at closing. The deal is expected to close in the fourth quarter.
Mid-Southern Bancorp, which is selling its bank, will keep $10 million of its cash.
Either party can terminate the deal if the purchase price falls below $36.2 million.
Alexander Babey, Mid-Southern’s president and CEO, will join the credit union in a consulting role. Beacon will keep all of Mid-Southern’s branches and loan production offices.
Luse Gorman and Piper Sandler advised Mid-Southern. Barnes & Thornburg and Donnelly Penman & Partners advised Beacon.