CANTONMENT, Fla.—In a move that has not been seen since credit unions began buying banks more than ten years ago, one credit union intends to acquire a bank that’s nearly equal to its own size.
The $275-million Harvesters Credit Union here has agreed to buy $210-million First National Bank Northwest Florida, based in Panama City. HCU is headquartered near Pensacola, Fla. and is approximately 153 miles from Panama City in the state’s panhandle.
Terms of the deal were not released.
The agreement has been unanimously approved by both boards of directors and shareholders, and is pending regulatory approval. The transaction is expected to close in the first quarter of 2023. The combined company will have 10 locations, according to Harvesters Credit Union.
“Both organizations are locally owned and operated with leadership that has spent all of their lives, and careers, here in Northwest Florida,” said Keith Golden, CEO and president of Harvesters Credit Union. “This union will allow us to continue offering the extraordinary service that only a local organization can provide. Joining forces will allow us to serve our local communities for many years to come.”
Added First National Bank CEO Angie Barger, “This is the perfect match as both institutions share the same philosophy of providing superior customer service and maintaining a local community feel. You will never be a number.”
Harvesters Credit Union made $943,709 in net income 2021 and $1.26 million through June of 2022 according to Call Report data. Net worth stands at 7.89%. First National made $86,000 in net income in 2021, and $353,000 through June of this year, FDIC data show.
A Resurgence
The pioneer of credit union purchases of banks, Michael Bell, said the agreement marks what he expects will be a resurgence in the pace of credit union bank buys this year—and recognized the deal is unique.
“The sizes of the institutions are similar but the combined institution is much stronger than either party on their own. The transaction brings a nice measure of geographic and product diversity as well,” said Bell, leader of the Financial Institutions Practice Group at Honigman LLP, which is representing Harvesters. These deals continue and I still expect 2022 to be a record year. It seems that we have had a bit of a summer break, but deals are moving now and activity levels are exceptionally high.”
Bell has been involved in well over 45 whole-bank agreements, plus additional bank branch purchases.