Evansville, Ind. (March 12, 2018) – Evansville Teachers Federal Credit Union (ETFCU) has announced their intention to acquire American Founders Bank (AFB) of Louisville, Ky. The acquisition will allow ETFCU, a $1.4 billion sized Federally insured entity to grow their position in the Louisville, Ky. market as well as enhance their mortgage lending and deposit growth in the area. 

Bill Schirmer, ETFCU president and CEO said that “in conjunction with our strategic business plan, we have been seeking to add several new branch offices in the Louisville market. We currently have two mortgage loan production offices in Louisville. This alliance with American Founders Bank will enable us to better serve our existing members in this area in addition to offering our expansive checking and other deposit products to new members as well. The acquisition complements our long-term business strategy.”

With this purchase, ETFCU will now offer a full array of loan and deposit products, including their 3% Vertical Checking accounts, under their mortgage division brand name Liberty Financial, a division of ETFCU. ETFCU, which consistently leads the Evansville area in market share for retail deposits and mortgage financing, will increase their current mortgage production through this combination.

Barry Brauch, president and CEO of American Founders Bank said, “this transaction brings together the highly sophisticated and successful personal banking expertise of ETFCU with AFB’s strength in business and commercial banking.” “We are pleased that our customers will get many improved services and that their deposits will continue to be protected to the very same level as always,” he added.  AFB has headquarters located at 1200 Forest Bridge Road and a branch at 4220 Shelbyville Road in Louisville.

Currently, ETFCU serves more than 192,000 members across five states. Until now, deposit services had been relatively limited to the tristate area. The American Founders Bank acquisition will give ETFCU two new office locations to serve their members with their business and retail lending as well as deposit service needs.

 “As a member-owned financial cooperative, we continue to strive to offer increased value to our members. Through this acquisition, we will be in a better position to provide the benefits our members appreciate, as well as expand our value proposition to new members in this market,” says Bill Schirmer.

Mr. Schirmer said the credit union paid out an aggregate $2.3 million in checking dividends, reward points, and ATM refunds during 2017.

Transaction counsel was provided to ETFCU by Lynn Cooper of Milynco Financial as financial advisor. Michael Bell of Howard and Howard provided legal counsel to ETFCU.  American Founders Bank was advised by ProBank Austin with Craig Mancinotti serving as lead advisor and Dinsmore & Shohl, LLP serving as legal counsel.

The transaction is subject to regulatory approval and is not expected to close until later in the year.