The planned merger of 32963-based Marine Bank with a Michigan credit union – originally slated to close earlier this year – will apparently be delayed until sometime in 2026 as a result of cuts to the leadership, staff and budget of the federal regulatory agency that needs to sign off on the deal. The all-cash acquisition of Marine Bancorp of Florida, the holding company for Marine Bank & Trust Company, by Michigan’s ELGA Credit Union, originally was slated to close in early 2025, but Marine Bank president Bill Penney now says the deal won’t be finalized until next March or April. The Trump administration is seeking broad cuts across federal banking regulatory agencies, and the National Credit Union Administration (NCUA), the agency overseeing the Marine merger, has thus far this year lost two of its three directors, and more than 100 of its approximately 1,200-member staff. With many more departures expected in the coming weeks and months, NCUA Executive Director Larry Fazio said the agency is “prioritizing actions that ensure we are able to continue successfully performing our core mission” of ensuring the safety and soundness of credit unions. Penney said that when Marine and ELGA are combined, it will be “a really good combination for our customers, our employees and our community” because the two entities are so different. Announced 14 months ago, in June 2024, the deal was unanimously approved by the boards of both businesses. With a buyout price of $43.75 per Marine Bancorp of Florida share, board members and other investors will reap a sizeable profit from the sale, rewarding their long-term investment and support for the bank since it was founded in 1997. For Marine Bank, which has approximately $650 million in assets, the agreement brings in a like-minded community-oriented partner with assets and tools to expand consumer and low-income lending, grow its customer base, and expand its philanthropic endeavors, Penney says. For ELGA – which is based in Grand Blanc, Michigan, with approximately $1.5 billion in assets and nearly 100,000 members – the deal adds seven Florida Marine Bank locations and diversifies ELGA’s offerings to include commercial banking and financial management. Once the transaction is complete, the new entity will have total assets of approximately $2.2 billion, serving more than 105,000 members at 18 branches in Michigan and Florida. Member deposits will be insured by the NCUA Share Insurance Fund (FCUA) for up to $250,000 for individual accounts, similar to how the FDIC insures for-profit banks. “This highly complementary transaction will allow us to bring our expertise in consumer banking and low-income lending to Marine Bank’s communities, while gaining extensive business banking experience,” Terry Katzur, president and CEO of ELGA Credit Union, said last June. “With our combined resources and capital, we will be poised to better serve members and businesses in Michigan and Florida for years to come.” “Following the close of the transaction, Bill 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. “ELGA has committed to maintaining all Marine Bank jobs and banking centers, as well as expanding our philanthropic efforts throughout Vero Beach and Marine Bank’s other communities,” Penney says. <em>Photos by Joshua Kodis</em> [gallery ids="221029,221031,221032"]