Power Financial Credit Union has signed a definitive agreement to purchase Florida-based TransCapital Bank. The combined entity will include approximately $860 million in total assets with 16 ATM’s and nine locations in south Florida to serve its memebrship.
TransCapital Bank has branches in Sunrise, Hallandale Beach, and Delray Beach, which will operate as branches of the credit union after the sale is finalized later this year.
According to Power Financial CU CEO Allan Prindle, this is the first purchase of a bank for the credit union and an extensive due diligence was conducted before pursuing the definitive agreement.
“We didn’t enter into this transaction lightly. TransCapital Bank is the 10th largest bank in the region in terms of asset size, is highly ranked by its return on average assets, and has demonstrated an impressive track record of being managed efficiently,” Prindle said. “We also share similar philosophies with their team in our fervent desire to serve our local communities. We look forward to this exciting expanded relationship, which will offer TransCapital Bank customers the benefits that come from being members of our credit union, while enhancing our ability to broaden the business line of services for our current and future members.”
The transaction is expected to close during the third quarter of 2019, subject to customary closing conditions and shareholder and regulatory approvals.