ORLANDO, Fla.—FAIRWINDS Credit Union said it plans to acquire $489-million Citizens Bank of Florida, based in Oviedo.
The purchase will be the second bank buy for the $3.7-billion FAIRWINDS, which in 2019 purchased Edgewater, Fla.-based Friends Bank.
The Citizens Bank deal marks the fourth purchase of a bank by a credit union in the last three weeks.
FAIRWINDS said the Citizens Bank deal brings the CU’s market share in Seminole County to 10.25%.
Citizens Bank reported net income of $3 million in 2020 and $1.2 million through mid-year 2021. FAIRWINDS made $39.1 million in 2019, $16 million in 2020, and $29 million through June. The CU’s net worth is 9.1%.
"As an organization with deep roots in Seminole County, Citizens Bank of Florida shares FAIRWINDS' values of commitment to community and putting our members and customers first," said FAIRWINDS President and CEO Larry Tobin in a statement. "We look forward to welcoming Citizens Bank of Florida customers as new members of FAIRWINDS.”
Tobin said FAIRWINDS will be retaining all Citizens' employees.
Boost To Commercial Lending
The transaction will give a sizeable boost to FAIRWINDS' commercial loan portfolio which currently stands at $387 million. Post-acquisition, the portfolio will reach over $600 million, Yahoo Finance reported.
“FAIRWINDS has a large consumer portfolio serving over 200,000 members, while Citizens Bank of Florida excels in their commercial portfolio, in addition to serving consumer accounts,” said FAIRWINDS COO Phil Tischer. "The transaction will strengthen our established and growing commercial banking team and product offering."
"For 75 years, Citizens Bank of Florida has done a wonderful job of serving the constituents of our community by providing honesty and fair dealing, first articulated by our bank's founder," said Citizens Bank of Florida President and CEO Rick Lee in a statement.
FAIRWINDS and Citizens Bank of Florida have a history of working together in the community, the organizations said. Most recently, in 2020, FAIRWINDS and Citizens partnered to assist in the development of The Black Venture Fund, Yahoo Finance explained.
The acquisition, which is subject to regulatory and shareholder approval, is expected to be completed in December of 2021.
Another Deal Soon?
“This buy by FAIRWINDS is additional evidence that banks continue to seek CU buyers and CUs keep buying,” said Michael Bell, the pioneer of CU purchases of banks and a partner and co-chair of the Financial Institutions Practice Group at Honigman, who added another deal is on the way "very soon."
Bell has been involved in well over 40 whole-bank agreements, plus additional bank branch purchases.
FAIRWINDS Credit Union is represented by Shutts & Bowen, LLP. Citizens Bank of Florida is being advised by Smith Mackinnon, PA.