MidWestOne Financial Group, Inc. Announces Sale Of Florida Operations To DFCU Financial In All Cash Deal

Author: Benzinga Newsdesk | September 25, 2023 04:21pm

MidWestOne Financial Group, Inc. (NASDAQ:MOFG) ("MidWestOne", "we", "our", or the "Company") today announced that it has executed a definitive purchase and assumption agreement for the sale of its Florida operations to DFCU Financial. This transaction is an all cash deal that has been approved by the respective board of directors, and is expected to close in the second quarter of 2024.

 

Transaction Highlights

• MidWestOne is divesting its Florida operations, identified as a non-core market during our 2023 long-term strategic planning process
• The purchaser of our Florida operations is DFCU Financial, a $6.4 billion1 asset credit union headquartered in Michigan with a successful history of acquisitions, including its 2022 purchase of a ~$700 million asset commercial bank located in Florida
• We will receive a deposit premium of 7.5%, or approximately $11.9 million, pre-tax, based on our deposits as of June 30, 2023. This sale will include the transfer of $158.8 million of deposits1, $162.2 million in gross loans1, and our two branches
  
   

Charles ("Chip") Reeves, Chief Executive Officer of the Company, commented, "We have enjoyed serving customers in the regions of Fort Myers and Naples, Florida, and are very grateful to have had the opportunity to do so. However, as part of our long-term strategic planning process, we reviewed our geographic footprint with a focus on improving scale, and, ultimately, profitability. While our Florida operations have been performing well, we never reached the scale to allow this market to become a growth driver for MidWestOne without significant investment. This divestiture is an important step in the successful execution of our strategic plan. We anticipate utilizing the proceeds to continue scaling our targeted growth markets of the Twin Cities, Denver, and Metro Iowa."

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