This marks the second acquisition in the last two years for Evansville Teachers FCU.
Merger and acquisition business strategy.Evansville Teachers Federal Credit Union in Indiana is acquiring a community bank 120 miles to the east in Louisville, Ky., with $479,000 in net losses in the last two years. The merger will add 113.4 million in assets to the Evansville Teachers FCU ($1.5 billion in assets, 192,358 members).
American Founders Bank was based in Lexington, Ky., until 2015, when it sold its Lexington branches, was bought by Covington, Ky., businessman William P. Butler and ended the year with a $5.7 million profit. In 2016, it lost $473,000 as charge offs spiked. In 2017, the net loss was reduced to $6,000 as net charge offs fell from $463,000 in 2016 to were $86,000 in 2017. The bank had the equivalent of 18 full-time employees at year’s end, three fewer than a year earlier. Evansville Teachers FCU ended 2017 with 457 full-time employees, up from 400 employees a year earlier.
American Founders assets grew 10.7% in 2017, while loans grew 27.9% to reach $95.1 million at Dec. 31. The credit union’s assets grew 14% last year, while loans rose 12% to $1.2 billion. The Evansville Teachers FCU ($1.5 billion in assets, 192,358 members) had net income of $22.3 million in 2017, more than double its $10.5 million in 2016 income. The credit union was well capitalized with a net worth ratio of 9.95% at the end of 2017, up from 9.6% a year earlier.
