Michigan’s largest CU plans to buy Florida bank for $ 96 million

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The Lake Michigan Credit Union ($ 10.5 billion) on Thursday announced plans to acquire the $ 656 million Pilot Bank in Florida for $ 96.1 million in cash.

The boards of directors of the Grand Rapids-based Credit Union and Pilot Bancshares Inc., the holding company for the Tampa-based bank and its National Aircraft Finance Company, have unanimously agreed to a definitive agreement by which LMCU will pay $ 6.25 per share to Pilot The 295 shareholders of the Bank.

At the end of the first quarter, Pilot Bank had 15,379,859 shares outstanding.

Traded on the OTC, Pilot shares jumped 1.8% from $ 5.91 to $ 6.02 per share early Friday afternoon.

The transaction, subject to the approval of Pilot shareholders and regulators, is expected to close in the fourth quarter of 2021.

Founded in 1987, Pilot Bank, specializing in commercial loans, operates four branches in Tampa, one in St. Petersburg and the other in Lakeland. The bank’s 70 employees serve a client base of approximately 7,000 customers.

At the end of the first quarter, the bank posted net income of $ 2.7 million and capital under management of $ 53 million. Pilot Bank’s ROA was 1.74% in the first quarter, according to the FDIC.

The bank’s National Aircraft Finance Company (NAFCO) provides general aviation financing to businesses and individuals. According to NAFCO, it is one of the few companies to offer a full range of products to finance the purchase of owner-flown aircraft, including pistons, turboprop, jets, vintage aircraft, experimental devices and kits.

If the proposed acquisition obtains full shareholder and regulatory approvals, it will expand LMCU’s footprint to 19 branches and total assets of over $ 1.7 billion in Florida. In 2017, LMCU bought Encore Bank for $ 418 million in Naples, Florida.

The Pilot Bank deal will bring LMCU’s total assets to more than $ 11 billion with 65 branches and nine mortgage offices across Michigan and Florida.

As Michigan’s largest credit union by assets, LMCU also manages $ 12.5 billion in managed and held mortgages in its portfolio, and currently serves more than 500,000 members.

“The combination of the two operations will further enhance LMCU’s product offerings for our members through Pilot’s aircraft financing activities and SBA origination channels, while also adding a strong deposit base in Hillsborough counties,” Polk and Pinellas, ”said Sandy Jelinski, president and CEO of LMCU.

Pilot Bank President / CEO Roy Hellwege will join the LMCU team as President of Central Florida and Kevin Buckland will be President of Aircraft Finance at LMCU. He is currently executive vice president of the bank and president of NAFCO.

“We’re very proud of what we’ve built as a true community bank, but we’ve always wanted to make sure that whenever we make a decision that impacts the business, we speak to the four constituents we serve. , our employees, our customers, the community we serve and of course the shareholders, ”said Hellwege. “I can tell you that we all think this is the best outcome for all of our voters. Our team will remain largely intact, we will continue to serve our customers with even more product than we currently have, we will continue to serve the community, and our shareholders have received a very fair price assessment from Lake Michigan. We are very happy about it and we think it is the right decision.

This proposed transaction is the credit union industry’s fifth banking acquisition so far this year.

In May, the $ 7.4 billion GreenState Credit Union in North Liberty, Iowa, announced that it had entered into purchase and assumption agreements with the $ 759 million Oxford Bank & Trust bank. ‘Oak Brook, Illinois, and Omaha’s $ 383 million Premier Bank, Neb.

In January, the $ 7.1 billion Wings Financial Credit Union of Apple Valley, Minnesota agreed to acquire the $ 72.3 million from Brainerd Savings & Loan in Brainerd, Minnesota. And in April, the $ 10.7 billion Vystar Credit Union of Jacksonville, Fla. Agreed to buy the $ 1.5 billion Heritage Southeast Bank of Jonesboro, Georgia for $ 189 million, thus becoming the largest bank acquisition ever made by the credit union industry.

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About Teresa G. Wilson

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