First National Bank Northwest Florida is determined to sell itself to a credit union.
After the deal it entered last year with
At just below $400 million of assets, Innovations Financial would become one of the smallest credit unions ever to strike a deal for a bank. Typically, buyers in these deals have had at least $1 billion of assets.
For example, the $7.7 billion-asset Michigan State University Federal Credit Union,
The $179 million-asset First National Bank of Northwest Florida began operations in 1984 and has two branches in Panama City. Financial terms of its sale were not disclosed, and no target date to complete the transaction was given.
"Credit unions with strong balance sheets and access to secondary capital can safely and soundly do these deals," said attorney Mike Bell, who advised the credit union on the transaction.
David Southall, president and CEO of Innovations, would lead the combined institution.
"By joining forces with First National Bank Northwest Florida, we can expand our branch and team-member network, enhance our services and create greater value for our members and community," Southall said in a press release announcing the deal.
Credit union-bank deals were slow to materialize in the first half of the year, but three have been announced in the past two days, bringing the year's total to eight.
In addition to the Michigan State deal,
Sixteen
Alex Sanchez, president and CEO of the Florida Bankers Association, said he is always disappointed to hear that a bank is selling to a "tax-dodging" credit union.
"With a $32 trillion national debt, we can't afford this type of corporate welfare to these credit unions any longer," he said.
Innovations Financial reported net income of $2.5 million in the first half of 2023, a 10% increase compared with a year earlier, according to call report data from the National Credit Union Administration.
