ELGA Credit Union of Grand Blanc, Mich., announced June 4 it is purchasing Marine Bank & Trust, a Florida bank currently owned by Marine Bancorp of Florida, Inc. Subject to the terms of the agreement, shareholders of Marine Bank will receive $43.75 in cash for each share owned in the all-cash deal.
The transaction has been unanimously approved by the boards of directors of ELGA CU and Marine Bank. Upon completion of the transaction, ELGA CU will have total assets of approximately $2.2 billion, serve more than 105,000 customers and expand the communities it serves to 18 branches throughout Michigan and Florida.
“Throughout ELGA Credit Union’s 73-year history, our mission of ‘building lifelong relationships’ has remained at the core of our decision-making, and we believe this combination with Marine Bank will foster those relationships with our members and the communities we serve,” said Terry Katzur, president and CEO of ELGA Credit Union. “With our combined resources and capital, we will be poised to better serve members and businesses in Michigan and Florida for years to come.”
“This transaction is an exciting opportunity for Marine Bank to join forces with a like-minded, locally-operated organization that shares our values and our commitment to the communities and residents we serve,” said Bill Penney, president and CEO of Marine Bank & Trust. “Importantly, ELGA CU has committed to maintaining all Marine Bank jobs and banking centers, as well as expanding our philanthropic efforts throughout Vero Beach and Marine Bank’s other communities.”
The Independent Community Bankers of America criticized the transaction shortly after it was announced.
“ICBA and the nation’s community banks have repeatedly warned about the dangers of tax-exempt credit unions acquiring tax-paying community banks, and this dangerous trend is only accelerating — accounting for roughly a quarter of this year’s banking industry acquisitions,” said ICBA President & CEO Rebeca Romero Rainey. “Each acquisition expands the federal tax exemption for more than $2 trillion in credit union assets and displaces trusted providers of credit in local communities — while demonstrating the urgency of addressing the burdensome regulatory environment. Congress must act on this dangerous trend.”
ICBA notes this is the 12th transaction announced in 2024 where a credit union is purchasing a bank.
The transaction is expected to be completed in early 2025, subject to receipt of required regulatory and Marine Bank shareholder approvals. Upon closing, Marine Bancorp common stock will be retired.
Honigman, LLP is serving as legal counsel to ELGA Credit Union and McQueen Financial Advisors is serving as its financial advisor. Igler and Pearlman, P.A., is serving as legal counsel to Marine Bank & Trust. Piper Sandler & Co. is serving as financial advisor to Marine Bancorp of Florida, Inc., and rendered a fairness opinion to its board.
With $1.5 billion in assets, ELGA Credit Union is a community development financial institution that has been a community partner in Michigan since 1951.
Marine Bancorp of Florida, Inc., is the holding company for Marine Bank & Trust Company. Marine Bank, a $650 million community bank, was chartered in 1997 and serves the central east coast of Florida with five full-service branches and two LPOs in Vero Beach, Sebastian, Fort Pierce and Melbourne.
