Florida residents and businesses often see companies start up, go away, grow or merge with other companies. Many things can come into play in determining the path that a particular business will take including the industry in which it operates, local market forces, management teams and more. When two companies choose to join forces, there may well be expected some amount of benefit to both as well as to consumers or customers.
Today, what some may consider a unique venture is underway in Florida. A credit union is actually acquiring a bank. This is noteworthy largely because of the different operational models of these types of institutions. Credit unions involve some member ownership and operate as non-profit businesses whereas banks are for-profit companies that report to their private shareholders. In the case of Encore Bank, a Naples-based institution, its community focus is allegedly integral to making this merger possible.
Two years ago, Lake Michigan Credit Union opened its first branch in southwest Florida and has recently opened its fourth. Part of the reason this midwest-based organization moved into Florida was to serve its residents that spend winters in Florida. Encore Bank was started seven years ago and has six branches in total. It is expected that the 10 total branches of the new organization will remain and do not compete with each other. The deal is expected to be finalized in the first part of 2018.
Before pursuing a merger or acquisition, business leaders in Florida may want to consult with an attorney to understand the ramifications of such a deal.
Source: Naples Florida Weekly, “They call it…MERGER,” Robbie Spencer, October 19, 2017