Florida Bank Acquired by Michigan Credit Union in Landmark Deal

VERO BEACH, FL – February 16, 2026 – Marine Bancorp of Florida, Inc. is in the final stages of a landmark merger with ELGA Credit Union, a transaction that will see the Vero Beach-based community bank acquired by a larger, Michigan-based financial cooperative. The deal, which has now received substantially all regulatory and shareholder approvals, is expected to close in the coming weeks and represents a significant shift in the financial landscape of Florida's central east coast.

In a recent announcement, Marine Bancorp (OTCMKTS: MBOF), the holding company for Marine Bank & Trust Company, confirmed that the final preparations are underway to complete the transaction. The move marks the culmination of a process that began with the merger's announcement in June 2024 and highlights a growing national trend of credit unions acquiring traditional banks to fuel geographic expansion and service diversification.

A Cross-State Deal Nears the Finish Line

The merger brings together two institutions with different geographical footprints but a shared emphasis on community-focused service. Marine Bank & Trust, a well-established community institution chartered in 1997, manages approximately $650 million in assets. It has served the communities of Vero Beach, Sebastian, Fort Pierce, and Melbourne through five full-service banking centers and two loan production offices.

Its new parent, ELGA Credit Union, is a significantly larger entity headquartered in Grand Blanc, Michigan. Prior to this acquisition, ELGA reported assets of over $1.7 billion and served more than 109,000 members across Michigan. The all-cash transaction, valued at $43.75 per share for Marine Bancorp stockholders, will create a combined institution with projected assets of approximately $2.2 billion.

Upon completion, which is anticipated on or before April 1, 2026, the combined entity will operate a network of 18 branches across both Michigan and Florida. This strategic acquisition provides ELGA Credit Union with an immediate and substantial entry into the lucrative Florida market, a key objective for many financial institutions seeking growth in high-population states.

The National Trend of Credit Unions on the Offensive

This transaction is not an isolated event but rather a prime example of an accelerating trend in the U.S. financial sector. When announced in 2024, the ELGA-Marine deal was the 12th instance of a credit union acquiring a bank that year, putting the industry on a trajectory to surpass the previous record of 16 such deals set in 2022.

Credit unions, which are structured as not-for-profit cooperatives owned by their members, are increasingly looking to bank acquisitions as a powerful tool for growth. These mergers allow them to rapidly expand their geographic footprint, as seen with ELGA's jump from the Midwest to the Southeast. Furthermore, they provide an efficient way to acquire specialized talent and business lines that can take years to build organically. In this case, ELGA gains Marine Bank's established expertise in commercial banking and treasury management services, which will complement its own strengths in consumer and low-income lending.

This strategic approach enables credit unions to grow their asset base, diversify revenue streams, and offer a more comprehensive suite of products to a larger membership base, thereby enhancing their competitive standing against both large national banks and smaller community institutions.

What Changes for Marine Bank Customers and Staff?

For the thousands of individuals and businesses who bank with Marine Bank, the transition to a credit union model will bring notable changes, though leadership from both organizations has emphasized continuity and enhancement of service. ELGA Credit Union has publicly committed to retaining all current Marine Bank employees and keeping all existing banking centers in Florida operational.

In a move designed to ensure local continuity, Marine Bank's President and CEO, Bill Penney, will become the Florida Market President for the combined organization. This decision aims to preserve local decision-making authority and maintain the community relationships that have been a hallmark of Marine Bank.

Once the merger is finalized and a subsequent account conversion is completed—projected on or before August 1, 2026—all Marine Bank customers will become members of ELGA Credit Union. As members, they will gain access to ELGA's full suite of digital banking tools and a broader range of financial products. A significant benefit will be access to a much larger fee-free ATM network, which includes over 30,000 locations nationwide through the CO-OP, Allpoint, MoneyPass, and Presto networks, in addition to the CO-OP Shared Branch network for in-person services at other credit unions.

Navigating the Regulatory Maze

Receiving regulatory approval for a cross-industry merger of this type is a complex and rigorous process, making the green light a significant milestone. The transaction required clearance from multiple bodies, including the National Credit Union Administration (NCUA), the primary federal regulator for credit unions, as well as state banking authorities. The fact that the deal has cleared substantially all these hurdles suggests that regulators found the proposal to be financially sound and in the best interest of the members and customers involved.

ELGA Credit Union's status as a Community Development Financial Institution (CDFI) may have also played a favorable role. CDFIs are certified by the U.S. Department of the Treasury and have a primary mission of promoting community development in underserved areas. This mission-driven focus aligns with regulatory priorities and reinforces the credit union's commitment to supporting local communities, a promise that will now extend to Florida's central east coast.

The successful navigation of this regulatory landscape provides a potential blueprint for future bank-credit union mergers, which continue to face scrutiny from banking trade groups concerned about the tax-exempt status of credit unions.

Reshaping Florida's Competitive Banking Landscape

The arrival of a $2.2 billion institution in place of a $650 million community bank is set to alter the competitive dynamics in Vero Beach, Fort Pierce, and the surrounding areas. The new, larger entity will have an enhanced lending capacity and a more diverse product portfolio than Marine Bank possessed on its own.

Local competitors, including other community banks and regional credit unions, will now face a new kind of rival: one that combines the member-owned, not-for-profit structure of a credit union with the sophisticated commercial and business banking capabilities of a seasoned community bank. This hybrid model will allow the new ELGA-branded Florida operations to compete aggressively on rates and fees for consumer products while simultaneously challenging established players in the local business banking market. The combined entity is now poised to challenge established financial players across the region by offering a unique blend of community-focused, member-owned principles and sophisticated commercial banking capabilities.