PANAMA CITY, Fla.– The $400-million Innovations Financial Credit Union here has agreed to buy local First National Bank Northwest Florida.
The two-office First National Bank has $170 million in assets. The deal’s financial terms were not disclosed, nor was the expected closing date for the agreement.
The deal is the third such bank acquisition by a credit union announced this week, joining MSUFCU’s plan to purchase McHenry Savings Bank and Five Star CU’s plan to acquire OneSouth Bank.
Innovations Financial made $6.5 million in net income in 2022 and $2.5 million through June of this year, according to Call Report data. Capital stands at 9.97%. The CU has 23,700 members.
‘Greater Value’
“By joining forces with First National Bank NW Florida, we can expand our branch and team member network, enhance our services, and create greater value for our members and community,” said David Southall, president/CEO of Innovations, in a statement. “This is an exciting step forward that will shape the future of both of our organizations in significant ways.”
Added Angie Barger, president and CEO of First National Bank in a statement, “By combining our two local institutions’ strengths, expertise, and resources, we will continue our mission and commitment to deliver exceptional financial solutions and build upon the trusted relationships that have been our foundation. Our shared history and achievements have paved the way for this exciting merger, and I am confident that together we will create a stronger, more vibrant financial institution poised to meet our customers' evolving needs.”
‘Pace Has Picked Up’
The pioneer of CU purchases of banks, Michael Bell, said the agreement indicates more buyers and sellers are coming to the market.
“As you can see, the pace has picked up in the past few days,” stated Bell, a partner and co-chair of the Financial Institutions Practice Group at Honigman, LLP, which is representing Innovations Financial. “I expect the pace to remain elevated as we close out the year. There is a lot of pent-up demand on the buy and sell sides in this market and it’s just starting to break loose.”
Bell has been involved in nearly 50 whole-bank agreements, plus additional bank branch purchases.
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