Dort Financial Credit Union in Grand Blanc, Michigan, has agreed to buy Flagler Bank in West Palm Beach, Florida.
The $1.4 billion-asset Dort did not disclose the price it would pay for the $489 million-asset bank, which is a subsidiary of Flagler Bancshares.
The transaction is expected to close in the second quarter or early in the third quarter, the companies said Tuesday.
Upon completion of the transaction, Flagler's four branches would operate as "Flagler Credit Union, a division of Dort Financial Credit Union," according to Dort President and CEO Brian Waldron.
"This is a big step in Dort Financial's strategy, allowing us to better serve our members who spend winters in Florida. We also are excited about bringing our services to existing Flagler Bank customers and to potential members in the Palm Beach and surrounding counties," Waldron said in the press release.
Flagler Bank CEO Edward Sterling, who plans to stay with the merged company in an executive role, said the deal gives Flagler's existing customers expanded services and its employees better benefits.
"We have been impressed with Dort Financial. The credit union has a long history of supporting its members and the communities which it serves," he said in the release.
Dort's membership currently includes anyone who lives, works, worships or attends school in the state of Michigan.
The credit union's chairman, Wayne Natzke, said he is excited about the opportunity to have the credit union serve a new market.
"This is a great new chapter in the over 70-year history of Dort Financial," he said. "Dort Financial's focus has really been on serving consumers, and Flagler has been very successful with meeting the needs of businesses in their region in Florida. It's a perfect combination."
There have now been 13 announcements this year of a credit union buying a bank.
Most recently, Veridian Credit Union in Waterloo, Iowa, Dec. 6 said it
Last year, 13 banks agreed to be
CEO Advisory Group, Bancorp I and McQueen Financial Advisors were Dort's financial advisors; Luse Gorman was its legal counsel.
Flagler's financial advisor was Hovde Group, and its legal counsel was Smith Mackinnon.
Dort reported net income of $14.9 million in the first nine months of 2021, a 34% increase compared with a year earlier, according to call report data from the National Credit Union Administration.
