CRESTVIEW — The First National Bank of Crestview has agreed to be purchased by First Commerce Credit Union.
The credit union, with nine locations in Northwest Florida and southwest Georgia, will acquire the private commercial bank, which was established in 1956. That includes the bank’salmost 10,000 customers and $85 million in assets, according to an FNB of Crestview press release.
This would be the first time that a credit union has purchased a bank in Florida, according to the press release.
Both financial institutions' boards have approved the agreement. Now, they need approval from state and federal regulatory agencies including the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the National Credit Union Association and the Florida Office of Financial Regulation.
Both parties hope to have the purchase approved and finalized within the next six to eight months.
The purchase decision was made after "much deliberation" from FNB of Crestview’s board of directors, the release stated.
"As a multi-generational family bank … and with our customers in mind, our board members have decided to take a less active role in the banking industry,” said longtime board member J.D. "Jake" Wingard.
Dale E. Rice Jr., the current president and chief executive officer of FNB Crestview, will continue to oversee all three locations' daily operations. Upon the deal's final approvals, Rice will serve as a regional executive for First Commerce.
The bank has been in talks with the Tallahassee-based credit union for the past five months, Rice said.
Although the bank’s name will change, Rice is confident with the decision.
“When the time comes, we know our employees, customers and the community as a whole will be in good hands with First Commerce,” Rice stated.
First Commerce Credit Union, a not-for-profit, has been in business for 75 years. If approved, the purchase would increase its customer base to more than 50,000 and increase assets to more than $500 million.
Email News Bulletin Staff Writer Matthew Brown, follow him on Twitter or call 850-682-6524.
This article originally appeared on Crestview News Bulletin: Credit union to buy First National Bank of Crestview