Harvesters CU to acquire First National Bank Northwest Florida

Cantonment, Fla.-based Harvesters CU agreed to acquire substantially all of the assets and liabilities of Panama City, Fla.-based First National Bank Northwest Florida.

Financial terms of the deal were not disclosed. S&P Global Market Intelligence valuations for bank and thrift targets in the Southeast region between July 26, 2021, and July 26, 2022, averaged 150.14% of book and 160.54% of tangible book and had a median of 13.39x last-12-months earnings, on an aggregate basis.

The transaction, which is expected to close in the first quarter of 2023, will significantly increase the size of Harvesters CU's total assets. Harvesters reported $274.5 million in total assets as of June 30, while First National Bank Northwest Florida reported $239.4 million as of the same date, according to Market Intelligence data.

Harvesters CU expects the transaction to boost its total assets to about $450 million, according to the press release.

The announced transaction is Harvesters CU's first whole-bank acquisition. With the addition of First National Bank Northwest Florida's two branches, Harvesters CU will expand further east in the panhandle of Florida into the Panama City metropolitan statistical area.

Based on Market Intelligence data, Harvesters CU will enter Bay County, Fla., with two branches to be ranked No. 12 with a 3.07% share of roughly $6.41 billion in total market deposits.

"This union will allow us to continue offering the extraordinary service that only a local organization can provide. Joining forces will allow us to serve our local communities for many years to come," Harvesters CU President and CEO Keith Golden said in the press release.

Harvesters CU was advised by the law firm Honigman LLP. First National Bank Northwest Florida was advised by Philip A. Bates PA and Reinhart Boerner Van Deuren SC.

The announcement continues the trend of Florida banks being scooped up by credit unions. The Harvesters CU deal marks the 14th such deal announced in the state since 2015.

The transaction also marks the 10th credit union acquisition of a bank announced this year. The year was off to a hot start, with nine announcements through the first six months, but the Harvesters CU deal announcement is the first in more than two months.

"It seems that we have had a bit of a 'summer break' but deals are moving now and activity levels are exceptionally high," said Michael Bell, who advised Harvesters CU on this transaction. "I still expect 2022 to be a record year."

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