A local credit union has signed a definitive agreement to purchase a Florida bank with more than $400 million in assets.
Grand Rapids-based Lake Michigan Credit Union will purchase Naples-based Encore Bank, giving the credit union approximately $5.6 billion in assets and more than $9 billion in serviced mortgages. LMCU now has 10 Florida branches and more than 40 in Michigan.
Terms of the transaction were not disclosed.
LMCU President and CEO Sandy Jelinski said the acquisition will “help strengthen and expand our presence in the growing Southwest Florida region.”
“This is an exciting opportunity for both organizations, our collective customers, and our dedicated teams of bankers,” she said. “Encore's six branches are a perfect fit for our four Florida branch locations — there is no overlap. Plus, Encore is a healthy, well-run bank with experienced staff that when joined with our staff will immediately make the combined team a key player in this market."
Encore’s six branches are located in Naples, North Naples, Port Charlotte, Bonita Springs, Sun City Center and Fort Myers. LMCU already has locations in Naples and Bonita Springs.
The board of directors for each company has approved the acquisition, which is expected to be completed in the first quarter of 2018, subject to all regulatory approvals. Encore Bank CEO Tom Ray will stay on as regional president of LMCU of Florida after closing.
“We are extremely proud of the relationships we have built at Encore Bank and I am convinced this partnership will significantly benefit our customers and the communities we serve,” Ray said.
Mike Bell of Michigan-based law firm Howard & Howard advised LMCU as legal counsel and Donnelly Penman & Partners served as financial advisor. Encore was advised by legal counsel Jack Greeley from Smith Mackinnon and financial advisor the Hovde Group.