(UNDATED) – Crane Credit Union (“CCU”) and Home Financial Bancorp (OTCPK: HWEN, “Home Financial”), the holding company of Our Community Bank (“OCB”), announced today they have signed a definitive purchase and assumption agreement whereby CCU, headquartered in Odon, Indiana, will acquire the assets and assume certain liabilities of OCB, headquartered in Spencer, Indiana, in an all cash transaction.
Following the completion of this transaction, Home Financial and OCB will settle their remaining obligations and distribute their remaining cash to the Home Financial shareholders.
Under the terms of the purchase and assumption agreement, Home Financial estimates its shareholders will receive between $10.75 and $11.25 in cash consideration for each outstanding share of Home Financial common stock. This range represents 137% to 143% of Home Financial’s book value on June 30, 2020. The amount of per share consideration is subject to variation based on, among other things, OCB’s equity at closing, the amount of corporate level taxation of such transaction, any liabilities retained by Home Financial, costs related to the dissolution of OCB and Home Financial, and future operating results. Accordingly, investors should not assume the ultimate consideration distributed to shareholders will be within the range set forth above.
After the sale is finalized, OCB’s locations will operate as CCU offices and its customers will become CCU members with full access to the CCU’s wide array of consumer and commercial services, as well as its extensive lending products and programs.
The transaction has been unanimously approved by the Board of Directors of both institutions and is expected to close in 2021, subject to customary closing conditions, including the approval of Home Financial’s shareholders and regulatory agencies.
“We look forward to assisting the Our Community Bank team in Spencer and Cloverdale in building on their existing customer relationships,” said Kevin Sparks, President & CEO of CCU. “By teaming with OCB, we will expand our services to Owen and Putnam Counties, which fit within our existing market areas stretching from the Greater Indianapolis area down to Evansville.”
“We are excited to join Crane Credit Union because of the expanded opportunities it brings to our customers, our employees, and our communities,” said Kurt Rosenberger, President & CEO of Our Community Bank. “CCU has the financial strength, systems infrastructure, and expanded products to help us better serve our current and potential customers. Most importantly, CCU and OCB fit culturally and philosophically.”
Performance Trust Capital Partners, LLC served as financial advisor and Krieg DeVault LLP acted as legal counsel to Crane Credit Union. Renninger & Associates, LLC served as financial advisor and Barnes & Thornburg LLP acted as legal counsel to Home Financial and OCB.