Dearborn, Mich.-based credit union DFCU Financial is expanding into Florida by acquiring Tampa-based First Citrus Bank.
The boards of directors of both organizations announced the execution of the definitive agreement on May 12. The all-cash deal is expected to close in the fourth quarter.
First Citrus Bank had approximately $689 million in assets, nearly $400 million in loans and $622 million in deposits at the end of March. The combined entity is expected to have approximately $7.1 billion in assets and nearly $800 million in capital in Michigan and Florida with a total of 33 branches.
Following the transaction, the entire First Citrus Bank management team is expected to join the credit union. CEO Jack Barrett will be named Florida market president, and remaining executives are expected to fulfill similar roles for the Florida operations of the credit union. The credit union plans to keep all current bank branches open.
DFCU President and CEO Ryan Goldberg said Barrett’s leadership “has fostered a customer-centric culture that closely aligns with DFCU’s core values. We look forward to benefiting from his leadership going forward.”
First Citrus Bank shareholders will receive $47.75 in cash for each share owned. DFCU is expected to “cash out the outstanding options at FCB at the difference between the strike price and the per share cash consideration to FCB shareholders,” according to a press release.
DFCU Financial is being advised by the investment banking firm Donnelly Penman & Partners, Inc., and the law firm Honigman, LLP. FCB is being advised by the investment banking firm Hovde Group, LLC, and the law firm Smith Mackinnon, PA.