The proposed purchase of the Mackinac Savings Bank by the IBM Southeast Employees Credit Union would create the 16th billion-dollar cooperative in Florida next year.
Last month, the $946 million IBM Southeast Employees CU filed applications with state and federal regulators, including the NCUA, to secure approvals for the Delray Beach-based cooperative to buy the $109 million bank headquartered in Boynton Beach.
Established in 1994, Mackinac Savings Bank manages more than $98 million in total domestic deposits. As of Sept. 30, the bank posted a net income of $590,000 with a return on assets of 0.73% and return on equity of 8.55%, according to the FDIC.
Financial terms of the deal were not disclosed in publicly available documents that the credit union filed with the Florida Office of Financial Regulation in Tallahassee. However, IBM SECU anticipates approximately $1.6 million in onetime transaction related costs in the quarter after commencement of the merger next spring or summer, according to a letter to the credit union from the state regulator acknowledging IBMSECU's application.
IBMSECU President/CEO Michael L. Miller declined to comment on the proposed bank acquisition until after regulators approve it. Mackinac Savings Bank CEO Samuel B. Sherer Sr. did not return a call from CU Times seeking comment.
According to documents from the FOFR, the credit union intends to keep open Mackinac's three branches in Boynton, West Palm Beach and Delray. Although IBMSECU plans to close Mackinac's non-deposit mortgage origination office in Auburn, Mass., it will keep operating the bank's non-deposit mortgage-servicing office in Farmington Hills, Mich.
According to IBMSECU's state application, there are no plans to amend its bylaws to expand the field of membership to include any of Mackinac's customers that do not fall within the credit union's FOM. The bank's three branches are within IBMSECU's FOM. Mackinac Savings Bank customers will be offered an option to become a member of the credit union.
This is the fourth credit union acquisition agreement of a bank in 2016.
In August, the $588 million Family Security Credit Union in Decatur, Ala., announced plans to buy the $24.4 million Bank of Pine Hill in Pine Hill, Ala.
The $1.3 billion Advia Credit Union in Parchment, Mich., finalized its acquisition of the $82 million Mid America Bank in Janesville, Wis., on Aug. 1. In the same month, the $1.9 billion Royal Credit Union in Eau Claire, Wis., completed its purchase of the $35 million Capital Bank in St. Paul, Minn.
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