Lake Michigan Credit Union in Grand Rapids, Mich., has agreed to buy Encore Bank in Naples, Fla.

Tom Ray, CEO of Encore Bank in Florida
CEO Tom Ray says he's "proud of the relationships we have built" at Encore Bank, which is selling itself to a credit union.

The $5.2 billion-asset credit union will pay about $60 million in cash to acquire Encore and its parent company, Ovation Holdings. The deal is expected to close in the first quarter of 2018.

The $397 million-asset Encore operates six branches on the Florida Gulf Coast, including offices in Fort Myers and Port Charlotte. Lake Michigan Credit Union already operates four branches in the Naples area.

“We are extremely proud of the relationships we have built at Encore Bank and I am convinced this partnership will significantly benefit our customers and the communities we serve,” Encore CEO Tom Ray said in a news release Monday.

Hovde Group was financial adviser to Encore and Smith Mackinnon was legal counsel. Donnelly Penman was adviser to Lake Michigan Credit Union and Howard & Howard was counsel.

Subscribe Now

Authoritative analysis and perspective for every segment of the credit union industry

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.