DFCU Financial Expands with Winter Park Acquisition
Deal News | Nov 11, 2024 | EIN
DFCU Financial, a credit union based in Dearborn, Michigan, announced its acquisition of Winter Park National Bank in Florida, marking its third acquisition in Florida over the past two years. This strategic move expands DFCU's footprint into Central Florida, adding to their operations in Tampa, St. Petersburg, Naples, and Ft. Myers. The transaction is set to be finalized in 2025 pending regulatory approval. Michael Bell, partner at Honigman law firm, highlighted the preference of community banks for all-cash buyers, which has driven an increase in credit union-bank deals this year, already surpassing previous records. Following this acquisition, DFCU Financial will assume Winter Park's branch locations and intends to rebrand them. The financial terms remain undisclosed. Winter Park's CEO, David Dotherow, will maintain his leadership role as President of Central Florida. This acquisition has raised concerns among trade groups about the advantages credit unions hold due to their tax-exempt status.
Sectors
- Finance
- Banking
Geography
- United States – The acquisition involves companies based in Michigan and Florida, both of which are states in the United States.
- Florida – The target bank, Winter Park National, is based in Florida, and the acquisition expands DFCU's presence in the state.
Industry
- Finance – The acquisition involves credit unions and banks, which are key participants in the financial services industry.
- Banking – The transaction is a bank-credit union acquisition, which is relevant to the banking industry.
Financials
- Not Disclosed – The financial terms of the deal were not disclosed.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| DFCU Financial | Acquirer | Company | A credit union based in Dearborn, Michigan, expanding its operations in Florida. |
| Winter Park National Bank | Target | Company | A bank based in Florida, serving the Winter Park-Orlando-Kissimmee area. |
| Honigman | Legal Advisor | Company | A law firm that assisted in the transaction. |
| Michael Bell | Partner at Honigman | Person | Provided insights regarding the transaction and the trend of bank-credit union deals. |
| David Dotherow | President of Central Florida | Person | CEO of Winter Park National, retained for leadership post-acquisition. |
| Independent Community Bankers of America | Trade Group | Organization | A trade group expressing concerns over the competitive advantages of credit unions. |
| American Bankers Association | Trade Group | Organization | Expressed concerns over credit union-bank mergers and called for more transparency. |