GRAND BLANC, Mich.–Dort Financial Credit Union said it has entered into an agreement with Flagler Bancshares Corp. to acquire West Palm Beach, Fla.-based Flagler Bank.
The $1.428-billion Dort Financial said the deal for the $489.3-million bank still requires approval by applicable bank and credit union regulators and Flagler Bancshares’ stockholders.
Upon completion of the transaction, the credit union said Flagler will operate as “Flagler Credit Union, a Division of Dort Financial Credit Union.”
Terms of the acquisition were not released.
“We are working closely with current Flagler Bank CEO Edward Sterling and regulators on the merger,” said Dort Financial President & CEO Brian Waldron “This is a big step in Dort Financial’s strategy, allowing us to better serve our members who spend winters in Florida. We also are excited about bringing our services to existing Flagler Bank customers and to potential members in the Palm Beach and surrounding counties.”
Branches, Employees to Remain
Dort Financial Credit Union said it will operate Flagler Bank’s four current branches and will be retaining Flagler Bank’s 44 employees to continue to serve its customers with expanded services.
“We plan to provide our full range of services to people in that region,” Waldron added. “We also plan to provide that service with the same friendly people that Flagler Bank’s customers are accustomed to seeing when they visit one of the branches.
“This growth allows us to live up to our mission by making our diverse suite of financial services and innovative technology as accessible as possible to residents and businesses in a new region in Florida,” Waldron continued. “Dort and Flagler are a really good match when it comes to meeting people’s financial needs and improving the communities which we serve. We look forward to supporting those communities in an impactful way.”
Bank CEO to Remain in New Role
According to Dort Financial, Sterling will be staying on in an executive role.
“This is a great opportunity to provide our existing customers with expanded services and our employees with even better benefits as members of the Dort team,” Sterling said in a statement. “We have been impressed with Dort Financial and we are really looking forward to the future as Flagler Credit Union as a division of Dort Financial. The credit union has a long history of supporting its members and the communities which it serves.”
If approved by regulators and shareholders, the deal is expected to be completed in the second or early third quarter of 2023, subject to all required regulatory requirements and approvals and the fulfillment of all customary closing conditions, the credit union said.
Advisors on Deal
Dort Financial is being advised in the transaction by CEO Advisory Group, Bancorp I and McQueen Financial Advisors as financial advisors, and Luse Gorman, PC as legal counsel. Flagler is being advised in this transaction by Hovde Group, LLC as financial advisor and Smith Mackinnon, PA as legal counsel.
Dort Financial, which has more than 103,000 members, posted $14.8-mllion in net income with capital of 14.54% as of Sept. 30.
Flagler Bank, which was established in 2000, reported $7.6 million in net income as of the same date.