TALLAHASSE, Fla. — One credit union’s deal to buy a bank, announced in August, apparently has fallen through.
The Office of the Comptroller of the Currency is reporting that the application of First National Bank of Crestview, Crestview, Fla., to merge with First Commerce CU here, was withdrawn on Nov. 6.
No reasons were given for the withdrawal of the application. However, FDIC data for FNB through September shows the bank failing, with total equity capital dropping to 1.02%.
First National Bank’s total assets have been consistently declining, from $93 million in September 2013, to $85 million when the deal with First Commerce was signed, to $80 million as of Sept. 30, 2014.
When the deal was signed, the $430-million First Commerce was aware FNB had faced financial difficulties, with FDIC data showing the bank had lost $457,000 in the first six months of 2014 after reporting losses of $2.3 million in 2013. The bank's June 30 financial statement also showed a $521,000 loss on selling foreclosed real estate.
Other CUs to buy banks in the last three years: Wisconsin's $2.1 billion Landmark CU acquired $190 million Hartford Savings Bank; Massachusetts' $429 million GFA FCU bought New Hampshire's $83 million Monadnock Savings Bank; $1.2 billion Municipal Employees CU purchased $61 million Baltimore-based Advance Bank; and the credit union that put everything in motion — Michigan's $1.6 billion United FCU — acquired $81 million Griffith Savings Bank in Indiana.