GRAND BLANC, Mich.—The $1.52-billion ELGA Credit Union is reaching well beyond its state’s borders to buy the $650-million Marine Bank & Trust, based in Vero Beach, Fla. The purchase marks the third time a Michigan credit union has reached into the Sunshine State to either buy a bank.
The credit union reported shareholders of Marine Bank will receive $43.75 in cash for each share owned in the all-cash deal. The transaction is expected to be completed in early 2025, subject to regulatory and Marine Bank shareholder approvals. Terms of the agreement were not disclosed.
ELGA Credit Union said the deal will combine its consumer and low-income lending expertise with Marine Bank’s commercial and treasury management offerings, ELGA said.
Profitable Bank
Marine Bank made $977,000 in net income through March of this year and $4.9 million in 2023, according to FDIC data. ELGA reported $7.1 million in net income in Q1 2024 and $27.8 million in 2023, according to call report data. The CU’s capital stands at a very high 25.27%.
“Throughout ELGA Credit Union’s 73-year history, our mission of Building Lifelong Relationships has remained at the core of our decision making, and we believe this combination with Marine Bank will foster those relationships with our members and the communities we serve,” Terry Katzur, president and CEO of ELGA Credit Union, said in a statement. “This highly complementary transaction will allow us to bring our expertise in consumer banking and low-income lending to Marine Bank’s communities, while gaining extensive business banking experience. With our combined resources and capital, we will be poised to better serve members and businesses in Michigan and Florida for years to come.”
Added Marine Bank President and CEO Bill Penney in a statement, “This transaction is an exciting opportunity for Marine Bank to join forces with a like-minded, locally operated organization that shares our values and our commitment to the communities and residents we serve. Like us, ELGA CU brings a personalized experience to all of its members. With its wealth of knowledge serving communities and individuals that don’t typically have access to banking services, we will be able to expand our base of customers in east central Florida. Importantly, ELGA CU has committed to maintaining all Marine Bank jobs and banking centers, as well as expanding our philanthropic efforts throughout Vero Beach and Marine Bank’s other communities.”
Florida Market
Following the close of the transaction, Penney will remain as Florida Market President and retain local decision-making authority over banking centers in the communities Marine Bank currently serves, ELGA said.
Michigan's credit unions have been active in buying banks in Florida. Grand Rapids-based Lake Michigan Credit Union has bought two banks, one in Tampa, the other in Naples. DFCU Financial in Dearborn, Mich. also bought a bank in Tampa, as well as the two Florida offices of an Iowa-based bank.
Honigman, LLP is serving as legal counsel to ELGA Credit Union and McQueen Financial Advisors is serving as its financial advisor. Igler and Pearlman, P.A. is serving as legal counsel to Marine Bank & Trust. Piper Sandler & Co. is serving as financial advisor to Marine Bancorp of Florida, Inc.
The pioneer of credit union purchases of banks, Michael Bell, a partner and chair of the Financial Institutions Practice Group at Honigman, said it is becoming much more common for credit unions to expand outside of their home states via bank acquisitions.
“The year continues on record pace and I don’t expect that to abate. When transactions are a win for all stakeholders on both sides of the deal they happen and they keep happening. The market is speaking and at this current time these deals are the soup of the day,” Bell told CUToday.info.
Bell has been part of more than 60 whole-bank agreements, plus additional bank branch purchases.
Other Deals to Date in 2024
As CUToday.info reported earlier, other bank acquisitions announced by credit unions to date in 2024 include:
- The $1.2-billion Pima Federal Credit Union has agreed to purchase the $272-million Republic Bank of Arizona, based in Phoenix.
- The $4.9-billion American Heritage Federal Credit Union here has agreed to buy three branches of LINKBANK, which is headquartered in Camp Hill, Pa., the bank reported.
- The $4.7-billion TDECU in Lake Jackson, Texas, has agreed to buy the $1.2-billion Sabine State Bank and Trust, based in Many, La.
- The $1.9-billion Harborstone Credit Union in Lakewood, Wash., has announced plans to buy Mt. Vernon, Wash.-based SaviBank.
- The $2-billion Empeople Credit Union in Moline, Ill., acquired the $182-million TSB Bank in Lomira, Wis.
- Beacon Credit Union, Wabash, Ind., acquired Mid-Southern Savings Bank of Salem, Ind. for approximately $45 million.
- In Tacoma, Wash., the $2.9-billion Sound Credit Union here has agreed to buy $104-million Washington Business Bank, based in Olympia, Wash.
- The $2.9-billion Advia Credit Union, Kalamazoo, Mich., reached into Illinois with to purchase the $255-million NorthSide Community Bank.
- The $7-billion Hudson Valley Credit Union is purchasing the $593-million Catskill Hudson Bank in Kingston, N.Y., for $28.6 million.
- The $11.8-billion Global FCU in Anchorage, Alaska is buying the $1.5-billion First Financial Northwest Bank in Renton, Wash.
- The $7-billion Hudson Valley Credit Union here is purchasing eight locations from Boston-based Berkshire Bank.
- The $2.98-billion All-In Credit Union in Daleville, Ala. is buying five branches and the book of business from Louisville, Ala.-based 22nd State Bank.
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