GRAND GRAND BLANC, Mich.—Are NCUA’s staff reductions slowing deals involving credit unions buying banks?
The planned merger of ELGA CU here with Marine Bank, based in Vero Beach, Fla., originally slated to close earlier this year, will apparently be delayed until sometime in 2026 as result of NCUA’s staff reduction, Vero News reported.
As CUToday.info reported, the agency intends to reduce its staff by about 20% through voluntary buyouts and retirements due to the Trump Administration’s mandate that federal agencies reduce staff.
Sources tell CUToday.info that the NCUA has been taking longer to approve both credit union-to-bank mergers and credit union-to-credit union combinations
The all-cash acquisition of Marine Bancorp of Florida, the holding company for Marine Bank & Trust Company, by Michigan’s ELGA Credit Union, originally was slated to close in early 2025, but Marine Bank president Bill Penney now says the deal won’t be finalized until next March or April, Vero News said.
Vero News pointed out NCUA has lost more than 100 of its approximately 1,200-member staff.
With many more departures expected in the coming weeks and months, NCUA Executive Director Larry Fazio told Vero News the agency is “prioritizing actions that ensure we are able to continue successfully performing our core mission” of ensuring the safety and soundness of credit unions.
Announced 14 months ago, in June 2024, the deal was unanimously approved by the boards of both businesses. The buyout price is $43.75 per Marine Bancorp of Florida share, Vero News said.
The $1.5-billion ELGA will add seven Florida Marine Bank locations. Once the transaction is complete, the new entity will have total assets of approximately $2.2 billion, serving more than 105,000 members at 18 branches in Michigan and Florida, Vero News said.