The Orlando Business Journal is reporting that $2.2 billion-asset Fairwinds Credit Union (Orlando, FL) has agreed to buy the $95 million-asset Friends Bank (New Smyrna Beach, VA).
Fairwinds CU has 30 branches, while Friends Bank has 3 locations.
Fairwinds CU did not disclose the price of the deal. The deal is expected to close in the third quarter and is subject to regulatory and shareholder approval.
This the third announced deal of credit union acquiring a bank in 2019.
All of the transactions involved Florida institutions.
Read the story.
Friends had $96 million in assets in 2014 and has not grown in the subsequent four years. Sounds like a good deal for the stockholders of the bank. They found an exit strategy buyer for a bank nobody else wanted. Not sure if this is the best use of "member-owned" capital.
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