Florida Credit Union plans to buy Florida Bank in 2023

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The $274 million Harvesters Credit Union in Cantonment, Fla., plans to acquire the $216 million First National Bank Northwest Florida in Panama City, Fla., according to a joint statement from the financial institutions Monday.

Although it opened in 1984, First National Bank Northwest Florida said in the prepared statement that it was the oldest local community bank in the area. Specializing in business credit, the bank has 30 employees who operate two branches.

At the end of the first quarter, the bank was managing $195 million in deposits and had net income of $112,000, $20.5 million in capital and an ROA of 0.21%, according to financial reports filed with the FDIC.

A definitive agreement that requires Harvesters to purchase substantially all of the bank’s assets and liabilities has been unanimously approved by the boards and shareholders. Pending regulatory approvals, the transaction is expected to close in the first quarter of 2023.

Financial terms of the deal were not released.

The combined financial institutions will manage assets of approximately $490 million and operate 10 branches.

“Both organizations are locally owned and operated with leaders who have spent their entire lives and careers here in Northwest Florida,” Harvesters President and CEO Keith Golden said in a prepared statement. . “This union will allow us to continue to provide the extraordinary service that only a local organization can provide. Joining forces will allow us to serve our local communities for many years to come.

If the deal is approved by regulators and shareholders, Golden will remain as CEO.

This is Harvesters’ first bank buy transaction.

So far, 10 acquisition deals between credit unions and banks have been announced this year.

In 2021, 13 purchase agreements between credit unions and banks were announced.

However, the proposed $1.6 billion acquisition of Heritage Southeast Bank of Jonesboro, Georgia, by the $13 billion Vystar Credit Union of Jacksonville, Florida, has been scrapped. Additionally, Tennessee regulators are appealing to a state appeals court to stop the $1.2 billion Orion Federal Credit Union in Memphis from buying the $818 million Financial Federal Bank, also based in Memphis, and in Nebraska, a state judge upheld a Nebraska decision. The Department of Banking and Treasury is denying a bid to acquire the $369 million Premier Bank in Omaha from the $7.9 billion GreenState Credit Union in North Liberty, Iowa.

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