While the target is modest in size, the latest bank acquisition announcement by a credit union is still setting new industry benchmarks.
Harvesters CU's announced acquisition of First National Bank Northwest Florida is the largest bank to be targeted by a credit union relative to the size of the acquirer among all pending and completed deals, according to S&P Global Market Intelligence data. First National Bank Northwest Florida's $239.4 million in assets at June 30 makes up 87% of Harvesters CU's $274.5 million in total assets as of the same date. As such, the transaction stands to nearly double the size of Harvesters CU.
Breaking total asset records
Though First National Bank Northwest Florida is the third-smallest bank target this year, its $239.4 million in total assets boosted the total assets of all banks set to be acquired by credit unions to the highest yearly level yet.
The total assets of banks sold to credit unions this year stand at $4.22 billion across the 10 bank targets, breaking the previous record of $3.92 billion across 13 targets in 2019.
Further, the total average assets of the 10 banks selling to credit unions stand at $421.8 million this year, above the record high of $349.6 million across the 10 targets in 2021.
And credit unions are expected to break even more bank acquisition records this year. The 10 such deals announced through the first eight months of the year are just three shy of tying with the current record of 13 such announcements in 2019, excluding terminations.
Though credit unions are increasingly looking to bank acquisitions for growth, these deals make up a small portion of overall deal activity. Through Aug. 18, 109 deals involving U.S. banks have been announced, and only 9% of those deals involved credit union buyers.
Florida deals flourishing
Florida remained the state of choice for credit unions looking for bank targets. The Harvesters CU deal marks the 14th announced sale of a Florida-based bank to a credit union since 2015, five announcements ahead of the state in second place.
While these kinds of deals make up a small portion of overall deal activity in the U.S., credit unions make up a larger percentage of bank buyers in Florida. Credit unions were the buyers in two of the seven acquisitions targeting Florida-based banks announced this year.
