Florida Credit Union Plans 2023 Purchase of Florida Bank

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 on Monday.

Though it opened in 1984, First National Bank Northwest Florida said in the prepared statement that it is the oldest local community bank in the area. Specializing in commercial lending, the bank’s 30 employees operate two branches.

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

A definitive agreement that calls for Harvesters to buy substantially all of the bank’s assets and liabilities was unanimously approved by both boards of directors and shareholders. Pending regulatory approvals, the transaction is expected to close during 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 will operate 10 branches.

“Both organizations are locally owned and operated with leadership that has spent all of their lives, and careers, here in Northwest Florida,” Harvesters President/CEO Keith Golden said in a prepared statement. “This union will allow us to continue offering 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 the CEO.

This is Harvesters first bank buy deal.

So far, there have been 10 credit union-bank acquisition agreements announced this year.

In 2021, 13 credit union-bank purchase deals were announced.

However, the proposed acquisition of the  $1.6 billion Heritage Southeast Bank of Jonesboro, Ga., by the $13 billion Vystar Credit Union in Jacksonville, Fla., was called off. In addition, Tennessee regulators are appealing to a state appeals court to block the $1.2 billion Orion Federal Credit Union in Memphis from purchasing the $818 million Financial Federal Bank, also based in Memphis, and in Nebraska, a state judge affirmed a decision of the Nebraska Department of Banking and Finance to deny an application for the $369 million Premier Bank in Omaha to be acquired by the $7.9 billion GreenState Credit Union in North Liberty, Iowa.