MIDFLORIDA Credit Union has agreed to acquire two banking operations in Florida, as part of its expansion in the state.
Image: MIDFLORIDA’s new branch in Crystal Lake, Florida. Photo: Courtesy of MIDFLORIDA Credit Union.
MIDFLORIDA Credit Union will merge with Community Bank & Trust of Florida and will acquire the Florida assets of First American Bank of Iowa. The two transactions will bring the total assets of MIDFLORIDA to $4bn, $3bn in loans across 63 branches and 1,100 employees.
The two deals are subject to approval from regulatory authorities and customary closing conditions. The acquisition of First American Bank of Iowa’s Florida assets is expected to be closed this November and the merger with Community Bank & Trust of Florida could take place by this year end.
MIDFLORIDA claims that the merger with Community Bank & Trust is its largest credit union/ bank merger till date. Community Bank & Trust has assets of over $730m, along with $300m in trust assets. After the deal is closed, MIDFLORIDA will establish a trust company to manage and expand its service.
MIDFLORIDA CEO Kevin Jones said: “In many communities, credit unions are becoming the primary source for consumer and small business banking. We hope to strategically acquire additional financial institutions in Florida to expand our affordable consumer and business services.
“Our goal is for MIDFLORIDA to become the most convenient credit union in Central Florida.”
As per the credit union, Community Bank & Trust and First American Bank of Iowa were selected as partners because the two companies share the same service culture and commitment to customer needs as MIDFLORIDA does. The three institutions are also complementary in terms of their financial structures.
While Community Bank & Trust has strong deposit base in Ocala, Gainesville and The Villages, First American Bank of Iowa serves both commercial and residential mortgage lending in the Naples and Cape Coral markets.
Community Bank & Trust president and CEO Hugh Dailey said: “Merging with MIDFLORIDA just makes sense. Becoming part of MIDFLORIDA allows us to maintain the parts of our business that are most important to us – a focus on the customer’s needs, an emphasis on community and the ability to make quick, local decisions. We’ll maintain the same local bank philosophy that has made us so successful for the last 20 years.”
Upon completion of the deal, Dailey will join MIDFLORIDA as North Florida market president.