The Boards of Directors of Lake Michigan Credit Union and Pilot Bancshares, Inc, (OTCQX: PLBN), the holding company for Tampa-based Pilot Bank and National Aircraft Finance Company, today announced the execution of a definitive agreement by which LMCU will acquire Pilot in an all-cash transaction. In connection with the transaction, shareholders of Pilot will receive $6.25 in cash for each share. LMCU will also cash out the outstanding options at Pilot at the difference between the strike price and the per share cash consideration to Pilot shareholders.
The Boards of Directors of both financial institutions have unanimously approved the purchase, which will bring LMCU’s footprint to 19 branches in Florida and total assets of over $1.7 billion in the state. The combined entity will have over $11 billion in assets across its Michigan and Florida operations with a total of 65 branch locations and nine mortgage offices.
Sandy Jelinksi, president & CEO of LMCU stated, “We are thrilled that Pilot Bank and NAFCO have agreed to join with Lake Michigan Credit Union, bringing together two organizations that have a shared philosophy of putting our members and customers first. This is another step in our plan to enhance our member value and experience for our many wonderful members that live in or vacation in Florida, including those in this new thriving market, as well as future new members.”
Continued Jelinski, “The combination of the two operations will further enhance LMCU’s product offerings for our members through Pilot’s aircraft finance business and SBA origination channels, while also adding a strong core deposit base in Hillsborough, Polk and Pinellas counties. We look forward to welcoming the staff of Pilot to the LMCU family and the customers as new members of LMCU.”
Roy Hellwege, chairman & CEO of Pilot commented, “The Board of Directors and Executive Management Team of Pilot Bancshares, Inc., are extremely excited about joining an outstanding organization in Lake Michigan Credit Union. Our Board of Directors carefully evaluated the impact on our four key constituents; our valued employees, our clients, the communities we are privileged to serve, and of course, our shareholders.”
“Given the shared values of Pilot Bank and Lake Michigan Credit Union, we have no doubt that this is an outstanding outcome for all concerned parties,” Hellwege continued. “We look forward to serving the greater Tampa Bay Community for many years to come as part of the Lake Michigan Credit Union Family!”
Upon completion of the transaction, Roy Hellwege will join the LMCU team as president – Central Florida and Kevin Buckland will join as president – Aircraft Finance.
The transaction is contingent on approval by the shareholders of Pilot and is expected to be completed in the fourth quarter of 2021, subject to all required regulatory requirements and approvals and the fulfillment of all customary closing conditions.
LMCU is being advised by the investment banking firm Donnelly Penman & Partners, Inc. and the law firm Honigman, LLP. Pilot is being advised by the investment banking firm Hovde Group, LLC and the law firm Smith Mackinnon, PA.
About Lake Michigan Credit Union
Founded in 1933, Lake Michigan Credit Union, a state-chartered credit union, is one of the top performing credit unions in the country, with approximately $10.4 billion in assets, including $12.5 billion in mortgages serviced and held in portfolio. With over 500,000 members, LMCU has 59 branches, including 13 in Southwest Florida. LMCU members have access to over 55,000 AllPoint ATMs worldwide. LMCU provides a full-range of financial services, from high interest checking accounts (one named by Money magazine as the Best in America), to personal loans, mortgages, investments, commercial banking, treasury management, and mobile and online banking. To find out more please visit www.lmcu.org.
About Pilot Bancshares, Inc., Pilot Bank, and NAFCO
Pilot Bancshares, Inc. is the holding company for Pilot Bank and NAFCO. It was formed in 1987 and is traded on the OTCQX exchange under the symbol PLBN.
