Power Financial Credit Union Plans Bank Acquisition
The deal represents the fourth proposed credit union bank buy of a Florida bank in the first quarter.
The $654 million Power Financial Credit Union in Pembroke Pines, Fla. said Wednesday it signed a definitive agreement to buy the $204 million TransCapital Bank in Sunrise, the fourth proposed bank acquisition made by a Florida credit union in the first quarter.
Financial terms of the deal were not disclosed, though reportedly the credit union will purchase all of the issued and outstanding shares of the bank. The acquisition is expected close in the third quarter pending regulatory and shareholder approvals.
Founded in 1999, TransCapital Bank serves about 3,000 customers, employs 22 staff members, and operates three branches in Sunrise, Hallandale Beach and Delray Beach.
With $151 million in deposits and capital of $36.7 million, the bank posted a net income of $4.9 million at the end of 2018, according to the FDIC. TransCapital Bank also recorded an ROA of 2.42% and a ROE of 14.92%.
Although commercial and business loans make up most of TransCapital Bank’s portfolio, it also provides consumer deposit products.
According to Power Financial Credit Union CEO Allan Prindle, TransCapital Bank is the 10th largest bank in the region in terms of asset size, is highly ranked by its return on average assets, and has demonstrated an impressive track record of being managed efficiently,
“We also share similar philosophies with their team in our fervent desire to serve our local communities,” Prindle said. “We look forward to this exciting expanded relationship, which will offer TransCapital Bank customers the benefits that come from being members of our credit union, while enhancing our ability to broaden the business line of services for our current and future members.”
Power Financial CU currently operates five branches and employs 138 staffers who serve nearly 32,000 members.
Florida continues to a hotbed for credit union bank acquisitions.
In February, the $2.3 billion FAIRWINDS Credit Union in Orlando, Fla. announced that it intends to buy the $98 million Friends Bank in New Smyrna Beach. And in January, the $1.8 billion Central Florida Educators Federal Credit Union in Lake Mary, Fla. reported its proposed acquisition of the $174 million Fidelity Bank of Florida in Merritt Island, and Florida’s second largest credit union, the $8.2 billion VyStar Credit Union in Jacksonville, inked an agreement to buy the $279 million Citizens State Bank in Perry.
Across the nation in Washington, Sound Credit Union said it received the NCUA’s approval earlier this month that finalized its acquisition the $205 million Bank of Washington.
The deal was announced in September 2018.
On Monday, the Bank of Washington’s five locations reopened as Sound branches. Sound CU became the first credit union to buy a bank in Washington, according to the Northwest Credit Union Association.
The $1.5 billion Tacoma-based credit union reportedly paid about $30 million to purchase the commercial bank that managed $174 million in deposits, $20 million in capital, and served 2,300 customers, according to the FDIC.