Evansville Teachers Federal Credit Union in Indiana is acquiringa 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 tothe Evansville Teachers FCU ($1.5 billion in assets, 192,358members).

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 $5.7million profit. In 2016, it lost $473,000 as charge offs spiked. In2017, the net loss was reduced to $6,000 as net charge offs fellfrom $463,000 in 2016 to were $86,000 in 2017.

The bank had the equivalent of 18 full-time employees at year'send, three fewer than a year earlier. Evansville Teachers FCU ended2017 with 457 full-time employees, up from 400 employees a yearearlier.

American Founders assets grew 10.7% in 2017, while loans grew27.9% to reach $95.1 million at Dec. 31. The credit union's assetsgrew 14% last year, while loans rose 12% to $1.2 billion.

The Evansville Teachers FCU ($1.5 billion in assets, 192,358members) had net income of $22.3 million in 2017, more than doubleits $10.5 million in 2016 income. The credit union was wellcapitalized with a net worth ratio of 9.95% at the end of 2017, upfrom 9.6% a year earlier.

Its membership increased 16% last year, and has spread to fivestates. The credit union already has two mortgage loan productionoffices in Louisville.

A news release Monday from the credit union said acquiring thebank fits the credit union's long-term business strategy by addingthe bank's two branch locations in the Louisville area, andallowing the credit union to expand its mortgages and depositsthere.

“This alliance with American Founders Bank will enable us tobetter serve our existing members in this area in addition tooffering our expansive checking and other deposit products to newmembers as well,” said Bill Schirmer, ETFCU president/CEO.

“Through this acquisition, the credit union will be in a betterposition to provide the benefits our members appreciate, as well asexpand our value proposition to new members in this market,” hesaid.

This marks the second acquisition in the last two years forEvansville Teachers FCU.

In late 2016 the NCUA approved a merger to allow EvansvilleTeachers FCU's to acquire Evansville's Seaboard Gateway FederalCredit Union because its field of membership was diminished.

Seaboard Gateway FCU had $1.4 million in assets and 324 membersas of September 2016. It had piled up a net loss of $27,631 infirst nine months of 2016.