On April 25, 2019, New Bancorp, Inc., New Buffalo, Michigan, the holding company for New Buffalo Savings Bank, and Teachers Credit Union (“TCU”), announced the execution of a purchase and assumption agreement pursuant to which TCU will acquire the assets and assume the liabilities of New Bancorp and New Buffalo in an all cash transaction. Following the completion of this transaction, New Bancorp will settle its remaining obligations and distribute the remaining transaction proceeds to its shareholders. The total merger consideration is currently valued at approximately $21.3 million. However, if TCU is permitted by regulators to assume a liquidation account that is currently maintained by New Buffalo for the benefit of certain depositors, the total merger consideration may increase to approximately $23.4 million.
Luse Gorman is serving as legal counsel to New Bancorp and New Buffalo in the transaction. The Luse Gorman team consists of Kip A. Weissman, Scott A. Brown and Steven Lanter (Corporate/M&A), and Thomas P. Hutton and Brendan Saxon (Executive Compensation).
New Bancorp became the stock holding company of New Buffalo in connection with New Buffalo’s mutual to stock conversion in 2015. New Buffalo operates three bank branches in New Buffalo, Sawyer and Three Oaks, Michigan and had $119.5 million in assets as of December 31, 2018.
Teachers Credit Union has more than $3 billion in assets and 54 branches throughout Indiana and Southwest Michigan.