The $5.1 billion Lake Michigan Credit Union in Grand Rapids saidMonday it will buy the $418 million Encore Bank, which makes thedefinitive agreement the largest bank acquisition by a credit unionto date.

The Naples-Fla.-based bank, which serves about 20,000 customers,manages $279 million in real estate loans, $10 million incommercial loans and $5.5 million in individual loans, according toEncore's June 30 balance sheet filed with the FDIC.

At the end of the second quarter, Encore Bank posted net incomeof $1.1 million, according to its income statement. The bank posteda net income of $522,000 and an ROA of 0.52% at the end of thefirst quarter, according to the FDIC.

Encore Bank also operates six branches, which will increase LakeMichigan's branch network to 10 and expand the credit union'spresence in the “growing Southwest Florida region,” said Sandy Jelinski, president/CEO of LMCU. She alsosaid in a prepared statement that there is no overlap among thebank's six branches and credit union's four branches in theSunshine State.

LMCU did not disclose financial terms of the bankacquisition.

The acquisition also has the potential to increase the creditunion's membership from 306,218 to 326,218.

Tom Ray, CEO of Encore Bank, will serve as regional president ofLMCU in Florida.

Pending all regulatory approvals, the acquisition may befinalized during the first quarter of 2018. The bank purchase willincrease Lake Michigan's assets to $5.6 billion and it will managemore than $9 billion in serviced mortgages.

This agreement represents the third bank acquisition dealannounced by credit unions in 2017.

In May, the $189 million Trona Valley Community Federal CreditUnion in Green River, Wyo., inked an asset purchase andliability assumption agreement to buy the $36 million State Bankalso based in Green River, and the $52 million Citizens State Bankof Ontonagon, Mich. plans to sell its assets and liabilities tothe $761 million Honor Credit Union of BerrienSprings, Mich.

From January 2012 to May 2017, there have been 13 completedacquisitions of banks by credit unions.