DFCU Completes Florida Bank Purchase

DFCU Financial Credit Union of Dearborn ($6 billion in assets, 232,389 members) announced Tuesday it had completed the purchase of First Citrus Bank, which had $692.1 million in assets as of Sept. 30.

Separately, DFCU Financial is paying those who were members last year $38.5 million Wednesday as a “Cash Back” special dividend — the largest announced so far this season.

DFCU Financial announced in May that it would pay First Citrus shareholders $94.4 million. The bank has six branches: Five branches in Hillsborough County, including four in Tampa, and one in Saint Petersburg in Pinellas County.

The bank earned $5.8 million in the 12 months ending Sept. 30, or 0.84% of its average assets and down from 1.22% in the previous 12 months, while DFCU Financial earned $57.9 million, a 0.94% ROA that was down from 0.98% a year earlier.

Had the bank and credit union combined Sept. 30, it would have lowered DFCU Financial’s ROA by about 1 basis point.

Ryan Goldberg, DFCU Financial’s president/CEO, said buying the bank creates a stronger and more comprehensive financial institution for the credit union’s members.

“We are enthusiastic about this partnership and are committed to providing the exceptional level of service and support that our Florida and Michigan members have come to expect from both entities,” Goldberg said. “Together, we will offer our Florida members an enhanced banking experience with expanded product offerings, like mortgages, consumer loans and investment services.”

Within Florida, DFCU Financial will primarily serve people in Hillsborough, Pinellas, Pasco, Polk, Manatee and Sarasota counties. DFCU Financial’s full product and service offerings will be available at all locations after a full systems integration in mid-2023.

John M. Barrett, the bank’s former president/CEO, is now president and chief commercial services officer for the credit union’s Florida market. “In this role, Barrett will grow the Florida market and lend his extensive business banking expertise to direct commercial banking in Florida and Michigan,” a news release from the credit union stated.

“Our combined full suite of products and services parlays well into helping Michigan and Florida families become more financially secure and businesses economically successful,” Barrett said.

If the deal had closed Sept. 30, DFCU Financial’s boosted assets would have allowed it to vie with Veridian Credit Union of Waterloo, Iowa ($6.7 billion in assets, 308,764 members) to be the 46th-largest credit union.

As it was, Veridian rose from 52nd to 46th in the 12 months ending Sept. 30, as DFCU Financial sank from 46th to 52nd. The other five credit unions that surpassed DFCU Financial in assets since September 2021 were:

• Broadview Federal Credit Union, Albany, N.Y. ($8.1 billion in assets, 505,365 members).
• Bellco Credit Union, Greenwood Village, near Denver ($7.1 billion, 358,564 members).
• Members 1st Federal Credit Union, Enola, Pa. ($6.8 billion, 533,183 members).
• MidFlorida Credit Union, Lakeland, Fla. ($6.7 billion, 453,228 members).
• Landmark Credit Union, Brookfield, Wis. ($6.1 billion, 376,612 members).

Meanwhile, DFCU Financial’s $38.5 million special dividend represents about $166 per member and 62 basis points of its ROA of 0.94% for the 12 months ending Sept. 30. The next largest announced this season was from Citizens Equity First Credit Union of Peoria, Ill. ($7.7 billion, 379,387 members), which paid members $35 million Dec. 1.

So far this season, 21 credit unions have announced $204.8 million in special dividends for their 4.1 million members. The amount represented about $50 per member and 28 bps of their 12-month ROA of 1.10%.

Group tallies in stories on special dividends published Dec. 13-29 had errors that overstated ROA. The errors have been corrected. The errors did not affect calculations published for individual credit unions.

Credit unions interested in sharing their special dividend announcements can email them to JDuPlessis@cutimes.com.