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ELGA Credit Union and Marine Bank have agreed to extend the deadline for completing their acquisition agreement, but either party may terminate the deal during the first half of 2026, according to a July 2 letter sent to Marine Bank shareholders.
The $1.6 billion ELGA Credit Union, based in Grand Blanc, Mich.,announced plans in June 2024 to acquire the $630 million Marine Bank in Vero Beach, Fla., for $79.5 million in cash.
“We had hoped and initially expected that the merger would have closed in June,” the letter stated. “However, ELGA and its advisors, with Marine's input, continue to diligently work with the regulatory agencies that must approve the merger to move the applications to approval.”
In addition to the FDIC and the NCUA, state regulators in Florida and Michigan must approve the proposed acquisition applications. The letter did not disclose whether any approvals have been granted.
“If we (Marine Bank) and ELGA have not seen material progress with the regulatory applications by January 31, 2026, either of us may terminate the agreement,” the bank’s letter stated. “Further, if the merger does not close by April 30, 2026, either party will have the right to terminate the agreement.”
To compensate this delay, Marine and ELGA have agreed that at the closing of the consolidation, Marine will pay its shareholders a cash dividend in addition to the $43.75 per share price that ELGA will pay for each shareholders’ stock, according to the bank’s letter. The amount of the dividend will be 50% of Marine's consolidated net income from June 1, 2025, to the last day of the month prior to closing. As a point of reference, Marine Bank’s consolidated net income for May was approximately $332,000.
ELGA Credit union did not respond to CU Times' requests for comments.
Of the 22 credit union-bank acquisition agreements announced in 2024, three have been terminated.
After failing to secure regulatory approval, the $1.4 billion U.S. Eagle Federal Credit Union in Albuquerque, N.M., last month terminated its planned acquisition of the $499 million Southwest Capital Bank, also in Albuquerque. In June, the $4.7 billion TDECU in Houston dropped its acquisition of the $1.3 billion Sabine State Bank & Trust Co. in Many, La., and the $2.4 billion Atlanta Postal Credit Union abandoned its proposed deal to purchase the $911 million Affinity Bank in Covington, Ga., in December.
Eleven of the 2024 agreements have been completed, while eight remain pending, including ELGA’s proposed acquisition of Marine Bank.
READ MORE: Marine Bank’s Letter to Shareholders.
Peter Strozniak can be reached at pstrozniak@cutimes.com.
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