Michigan Credit Union Makes First Bank Buy
Dort Financial expects to close acquisition of Flagler Bank during Q3 in 2023.
The $1.4 billion Dort Financial Credit Union in Grand Blanc, Mich. said it expects to close on a proposed acquisition of the $489 million Flagler Bank in West Palm Beach, Fla., during the third quarter of 2023.
Dort Financial entered into an agreement with Flagler Bancshares Corporation, according to a Dec. 13 prepared statement. Financial terms were not disclosed.
Founded in 2000, Flagler Bank, which specializes in commercial lending, has 44 employees who run two offices in West Palm Beach, one office in North Palm Beach and one office in Boca Raton.
The bank ended the third quarter with $7.6 million in net income, and managed $399 million in deposits and $40 million in total bank equity, according to its Call Report filed with the FDIC.
If the transaction is approved by regulators and shareholders, the bank will operate as Flagler Credit Union, a Division of Dort Financial Credit Union.
“This is a big step in Dort Financial’s strategy, allowing us to better serve our members who spend winters in Florida,” Dort Financial President/CEO Brian Waldron, said in a prepared statement. “We also are excited about bringing our services to existing Flagler Bank customers and to potential members in the Palm Beach and surrounding counties.”
Flagler Bank President/CEO Edward C. Sterling III is expected to assume an executive position with the credit union when the purchase transaction closes. Dort Financial has also committed to retain the bank’s employees.
This is Dort Financial’s first bank acquisition and the industry’s 13th credit union-bank purchase agreement in 2022, which matches last year’s total number of deals.