On August 7, 2017, the Boards of Directors of Lake Michigan Credit Union (“LMCU”) and Ovation Holdings, Inc. (“Ovation”), the parent of Encore Bank, announced the execution of a definitive agreement by which LMCU will acquire Ovation. On April 20, 2018, LMCU completed the transaction with Ovation. The combined entity will have approximately $5.8 billion in assets, over $10 billion in serviced mortgages, with 10 branches in Florida and 43 in Michigan.
LMCU structured the transaction as an acquisition of the stock of Ovation, allowing Ovation’s shareholders to avoid double taxation that is typical of most credit union acquisitions of banks. This transaction represents LMCU’s first acquisition of a bank and is the largest acquisition of a bank by a credit union in the country.
LAKE MICHIGAN CREDIT UNION
LMCU is a Michigan chartered credit union headquartered in Grand Rapids, Michigan. Founded in 1933, LMCU is the largest credit union in Michigan, and is one of the top performing credit unions in the country. With a staff of over 1,000, LMCU's assets exceed $5.4 billion as of March 31, 2018. With over 360,000 members, LMCU has 47 branches, including 4 in Southwest Florida. 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, and commercial banking.
Encore Bank is the banking subsidiary of Ovation Holdings, Inc., which was founded in 2010 and is headquartered in Naples, Florida. Encore Bank operates as a community focused bank with local decision making. As of March 31, 2018, Encore had approximately $400 million in assets and operates 6 branches in Southwest Florida. Encore’s loan portfolio is balanced between consumer, commercial and commercial real estate and their client base consists of small and mid-sized businesses and their owners, professionals, real estate associations and retirees.