VERO BEACH, Fla.–A bank CEO’s claim that the acquisition of his bank by a credit union has been delayed due to staffing cuts at NCUA is not true, according to the agency.
As the CU Daily reported here, the $1.6-billion, Grand Blanc, Mich.-based ELGA Credit Union announced in 2024 it was acquiring the $650-million Marine Bank in Vero Beach, Fla. with plans to close the deal this year. But that has now been pushed back to 2026, with the bank’s president, Bill Penney, telling Vero News the longer timing is the result of the staffing cuts the Trump administration has ordered at NCUA.
But the federal regulator said in a statement to the CU Daily that that is not the case.
Staffing ‘Not a Factor’
“We appreciate the interest in the ongoing review of the purchase of Marine Bank by ELGA,” the agency said in a statement. “Each purchase transaction is unique and the NCUA has a responsibility to ensure actions taken by credit unions do not harm the credit union’s members or the share insurance fund.
“The specifics of the EGLA and Marine Bank transaction are confidential supervisory information,” the statement continued. “That said, a shortage of staff is not a factor in determining the timeline of this purchase review.
“The NCUA is undergoing a transformation following its voluntary separation program. Indeed, some packages are taking longer than prior years, but only a portion can be explained by changes in staffing,” NCUA added. “Rather, the timeframe associated with reviews reflects the additional complexity of the transactions presented in some of the recent packages.”
Seven Branches in Florida
When completed, the acquisition will give ELGA CU seven branches in the Vero Beach market. Following the close of the transaction, Penney will remain as Florida market president and retain local decision-making authority over banking centers in the communities Marine Bank currently serves,” according to ELGA.
