- Groundbreaking Merger Between Credit Union and Commercial Bank
- May 26, 2015 | Author: Robert L. Carothers
- Law Firm: Jones Walker LLP - Mobile Office
On May 5, Achieva Credit Union ("Achieva"), a Florida state-chartered credit union headquartered in Dunedin, Florida, announced that it had entered into an agreement to acquire Calusa Bank, a Florida state-chartered commercial bank headquartered in Punta Gorda, Florida. It is rare for a credit union to acquire a bank. The press release announcing the transaction stated that it would be only the seventh time that a credit union had acquired a bank. However, this transaction is even more unusual in that it would be the first time that a credit union acquired a bank in a "whole bank acquisition" in which the credit union acquires all of the stock of the bank and merges with the bank (Achieva will be the surviving entity). All previous transactions have been in the form of a purchase and assumption transaction in which the credit union purchases a majority of the bank's assets and assumes a majority of its liabilities.
According to the press release, Achieva will pay cash consideration of $23.2 million to the shareholders of Calusa Bank in order to acquire 100 percent of its stock. The price-to-tangible book value for the deal is 136.1 percent, the price-to-LTM earnings is 55.3 times, and the premium to core deposits is 5.03 percent.
Calusa Bank was established in 2007 and has approximately $165 million in total assets and four branches in Charlotte County and Sarasota County, Florida. Achieva has approximately $1.125 billion in total assets and 20 branches all located in western Florida. The CEO of Achieva stated that the transaction will fill a gap in its branch footprint. The transaction is subject to the receipt of all necessary regulatory approvals and shareholder approvals.