The BFKN Financial Institutions Group served as legal counsel to MidWestOne Financial Group, Inc. (“MidWestOne”) in 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. As part of this transaction, $158.8 million in deposits, $162.2 million in gross loans, and two branches will be transferred to DFCU Financial.
Overall, this strategic move by MidWestOne reflects its commitment to optimizing its operations and focusing on markets that offer the greatest potential for growth and profitability. With the sale of its Florida operations to DFCU Financial, MidWestOne is poised to strengthen its position and pursue new opportunities in line with its long-term objectives.
Charles (“Chip”) Reeves, Chief Executive Officer of MidwestOne, 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.”
BFKN’s legal team was led by Financial Institutions Group partner Abdul R. Mitha.
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