Tampa’s First Citrus Bank is merging with a Michigan credit union in an all-cash deal worth more than $100 million.
DFCU Financial, a credit union based in Dearborn, Mich., with nearly 30 locations, will take over First Citrus Bank’s six sites in Hillsborough and Pinellas counties, marking its entry into the Florida marketplace. All six branches will stay open under the DFCU Financial banner.
DFCU will pay First Citrus shareholders $47.75 per share, a significant premium over the stock’s Wednesday closing price of $29.25. Based on the company’s more than 2 million outstanding shares, that’s at least $98.5 million. DFCU will also cash out any outstanding stock options, bringing the total price to about $105 million.
The deal, if approved by shareholders and regulators, is expected to close by the end of the year.
“We’re delighted that DFCU has chosen Tampa Bay as their Florida headquarters and honored they have entrusted our executive team to build upon their 72-year history,” First Citrus Bank president and CEO Jack Barrett said in a statement. “This merger is not only a win for our shareholders, it’s a win for our associates, clients, Tampa Bay and frankly the state of Florida.”
DFCU has assets of $6.4 billion; this deal will push that to $7.1 billion. First Citrus Bank’s branches and management team will remain in place after the merger, with Barrett becoming Florida market president.
“Jack Barrett’s leadership has fostered a customer centric culture that closely aligns with DFCU’s core values,” Ryan Goldberg, DFCU’s president and CEO, said in a statement. “We look forward to benefiting from his leadership going forward.”