GRAND RAPIDS, Mich.—The $5.2-billion Lake Michigan CU here has agreed to acquire $400-million Encore Bank, headquartered in Naples, Fla.
The combined entity will have over $9 billion in serviced mortgages, with ten branches in Florida and over 40 in Michigan, the CU reported.
"We are delighted that Encore Bank has agreed to join with Lake Michigan Credit Union, to help strengthen and expand our presence in the growing Southwest Florida region," said Sandy Jelinski, president and chief executive officer of LMCU. "We admire Encore's high-level of personalized service, focus on improving our communities, and the commitment they have to always doing what's best for their customers...it's the same model we live by every day. This is an exciting opportunity for both organizations, our collective customers, and our dedicated teams of bankers. 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."
“We are excited to join the LMCU Team,” said Tom Ray, CEO of Encore Bank, who will stay on as regional president of Lake Michigan Credit Union of Florida after the acquisition is completed. “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.”
The agreement has been approved by the board of directors of each organization. The acquisition is expected to be completed in the first quarter of 2018, pending state and federal regulator approvals.
“This is the largest—based on asset size of the acquired bank—transaction to date. I expect the size and frequency of these transactions to continue to increase,” said Michael Bell, attorney and counselor with Royal-Oak, Mich.-based Howard & Howard, who is representing Lake Michigan CU. Bell has been part of 15 CU/bank deals, including one merger of a bank into a credit union.