New Buffalo operates three bank branches in Michigan including its main location in New Buffalo as well as locations in Sawyer and Three Oaks. The bank had $119.5 million in assets as of Dec. 31, 2018.

The addition of New Buffalo Savings Bank will increase TCU’s total number of branches to 57 and assets to approximately $3.2 billion. The transaction is valued at $21.3 million.

“We are excited to announce the acquisition of New Buffalo Savings Bank and look forward to welcoming their customers and employees into the TCU family,” said Paul Marsh, president and CEO of TCU. “This acquisition will allow us to expand our footprint and better serve our members in southwestern Michigan and it will result in better banking access for New Buffalo Savings Bank’s customers as well.”

Under the terms of the agreement, New Bancorp shareholders will receive a minimum of $28.42 per share in cash for each outstanding common share of New Bancorp. For all outstanding options of New Bancorp, TCU will pay in cash the difference between the exercise price of each option and the per share merger consideration.

New Bancorp has 718,031 shares outstanding, as well as 59,080 options with a weighted average exercise price of $14.09, TCU said in a statement.

TCU said the transaction was unanimously approved by the board of directors of both institutions and is expected to close sometime during the second half of this year.

New Buffalo Savings Bank launched in 1921. TCU said all three New Buffalo Savings Bank locations will continue to operate as branches of TCU after the sale is finalized.

“We are enthusiastic about our new partnership with TCU because of the expanded opportunities it brings to our customers, our employees and our community,” said Richard Sauerman, president and CEO of New Bancorp Inc. and New Buffalo Savings Bank. “TCU is a solid homegrown financial institution and this deal ensures that local banking will remain in our community.”