The $979 million IBM Southeast Employees Credit Union said it finalized the acquisition of the $109 million Mackinac Savings Bank in Boynton Beach, Fla. on Wednesday.
The CU Times initially reported in December that the Delray Beach-based credit union filed applications with state and federal regulators to secure approvals of the bank purchase.
Financial terms of the deal were not disclosed.
In publicly available documents that the credit union filed with the Florida Office of Financial Regulation in Tallahassee in November 2016, IBMSECU anticipated approximately $1.6 million in onetime transaction related costs in the second quarter, according to the credit union’s application.
Established in 1994, Mackinac Savings Bank managed $111 million in assets and $98.2 million in total domestic deposits at the end of the first quarter. The bank posted a first quarter net income of $124,000 with a return on assets of 0.45% and return on equity of 5.15%, according to the FDIC.
The credit union told state regulators that it intends to keep open Mackinac’s three branches in Boynton, West Palm Beach and Delray. Although IBMSECU plans to close Mackinac’s non-deposit mortgage origination office in Auburn, Mass., it is expected to keep operating the bank’s non-deposit mortgage-servicing office in Farmington Hills, Mich., according to documents from the FOFR.
The credit union will not amend its bylaws to expand the field of membership to include any of Mackinac’s customers that do not fall within the credit union’s FOM. The bank’s three branches are within IBMSECU’s FOM. Mackinac Savings Bank customers will be offered an option to become a member of the credit union.
This is the second acquisition of a bank that has been completed by a credit union this year.
In March, the $625 million Family Security Credit Union in Decatur, Ala., finalized the acquisition of the $20 million Bank of Pine Hill in Pine Hill, Ala.
Two other credit unions announced proposed bank acquisitions last month.
The $189 million Trona Valley Community Federal Credit Union in Green River, Wyo., inked an asset purchase and liability assumption agreement last week to buy the $36 million State Bank also based in Green River. The board of directors of both institutions approved the transaction, which is subject to customary conditions, including approvals of the NCUA, bank regulatory agencies and the shareholders of State Bank.
In addition, the $52 million Citizens State Bank of Ontonagon, Mich. plans to sell its assets and liabilities to the $734 million Honor Credit Union of Berrien Springs, Mich. The deal is pending regulatory approvals as well.
