Michigan's DFCU Offers to Buy Florida's First Citrus Bank for $94 Million
The planned purchase is expected to close by year's end.
The $6.4 billion DFCU Financial Credit Union in Dearborn, Mich., said it plans to buy the $689 million First Citrus Bank of Tampa, Fla., for $94.4 million.
The board of directors of the credit union and the bank said in a prepared statement on Thursday that they executed a definitive agreement that would pay FCB’s shareholders $47.75 in cash for each share they own. As of April 25, FCB’s shares outstanding totaled 2,063,637.
First Citrus Bancorporation is the parent holding company of FCB. Its stock, FCIT, trades on the OTC. Its book value per share was $24.16, according to the bank’s first quarter results.
On Wednesday, FCB’s stock was trading at $29.25 a share. After the announcement Thursday the stock began trading at $41 a share and finished the day at $42.90 a share.
The bank recorded a net income of $7.3 million and total capital of $53.3 million with a ROA of 1.18% at the end of Q1, according to its financial performance reports filed with the FDIC.
FCB’S 90 employees operate six branches and manage 8.000 deposit accounts, 6,000 loan accounts, $398 million in loans and $622 million in deposits.
“First Citrus represents DFCU’s initial expansion into Florida and a significant increase in commercial lending presence and expertise,” DFCU President/CEO Ryan Goldberg said in a prepared statement. “(FCB) CEO Jack Barrett’s leadership has fostered a customer-centric culture that closely aligns with DFCU’s core values. We look forward to benefiting from his leadership going forward.”
Upon completion of the transaction, the entire management team of FCB will join DFCU, with Jack Barrett leading as Florida market president and the remaining executives fulfilling similar roles they currently hold at FCB for the Florida operations of DFCU. Additionally, DFCU intends to keep all of FCB’s branches open following the completion of the proposed acquisition.
Pending approvals by FCB shareholders and regulators, the purchase is expected to close by the fourth quarter of this year. If approved, DFCU would become the second largest credit union in the Wolverine State with $7.1 billion in assets and nearly $800 million in capital and 33 branches across its Michigan and Florida footprint.
This marked the seventh credit union-bank buy deal so far in 2022.