Regulators approve MIDFLORIDA Acquisition of Space Coast Assets in Tampa Bay Area
MIDFLORIDA Credit Union and Space Coast Credit Union announced that they have received regulatory approval at the State and Federal levels for an agreement under which MIDFLORIDA would assume the Tampa Bay area branches, assets and membership of Space Coast Credit Union. This represents only a small portion of the Space Coast branch network and is viewed as a spin-off rather than a merger.
The spin-off must now be approved by a vote of SCCU members who live in the area to be transitioned. After the NCUA approval is received, a ballot package will be mailed to SCCU members in the spin-off area, which is mostly contained in Pinellas, Hillsborough, and Pasco counties. Votes can be cast by mail or at a special meeting, currently scheduled to be held in the Tampa area on March 22, 2012.
Douglas R. Samuels, SCCU’s President and CEO, stated that the proposed spin-off is the result of SCCU’s evaluation of the credit union’s ability to serve the members in the Tampa area as they deserve. Samuels indicated that in determining a strategy for the area, the credit union had to address the contrast of an excellent membership against a weak branch structure. “When we acquired Eastern Financial Florida Credit Union in 2009, we acquired the current branch structure as well as the members. The membership in this area is a highly participating group that is greatly valued by the credit union. But, the delivery structure is too spread out; preventing the ability to achieve any market scale from which to grow. This weak service delivery structure is not sustainable, and we would have had to significantly contract this in order to begin to grow this area again. Since this area is so separated from any other membership segment served by SCCU, we could not achieve the “springboard” effect we need to justify further investment in this area. Since we are not in the business of diminishing service to our members, we concluded that the best alternative is to find a nearby credit union that could actually expand and improve the service provided to our members in this area. MIDFLORIDA Credit Union appeared to be the perfect solution, since they are already rapidly expanding service in this area by building off of their strong position in Lakeland.”
The spin-off would transfer SCCU’s three Pinellas and three Hillsborough facilities along with their assets, loans, and ATMs in the area, as well as any SCCU members who live in Hillsborough, Pasco, Pinellas, Polk and Manatee to MIDFLORIDA following an affirmative membership vote. In addition, MIDFLORIDA plans to retain all existing staff at these locations at the time of the transition.
MIDFLORIDA Credit Union entered the Tampa Bay market earlier this year through a merger with Bay Gulf Credit Union. While MIDFLORIDA is relatively new to the Tampa area, the credit union has served west central Florida for more than 55 years and is currently the third largest credit union in the greater Tampa Bay area. Kevin Jones, President and CEO of MIDFLORIDA, commented that the SCCU acquisition would have an immediate and positive impact on the service provided both to historical MIDFLORIDA members and the newly-acquired SCCU members. Stated Jones, “The addition of these locations to our network will allow us to offer better service and convenience to the combined memberships.” The acquisition would bring MIDFLORIDA’s Pinellas/Hillsborough/Pasco membership to approximately 35,000 members and boost the area’s branch network to 14 branches.
If approved by the member vote, the spin-off is planned for July 1, 2012.
About Space Coast Credit Union
Space Coast Credit Union is headquartered in Melbourne, Florida, and serves over 370,000 members with assets of over $3 billion through a network of 60 branches and 143 ATMs located throughout Florida and through its web site, SCCU.com. Space Coast Credit Union is open for membership to anyone who lives or works in 19 Florida counties.
About MIDFLORIDA Credit Union
MIDFLORIDA is headquartered in Lakeland, Florida and serves over 150,000 members with assets over $1.6 billion through a network of 32 branches, 40 ATMs and through its website, midflorida.com. MIDFLORIDA credit union is open for membership to anyone who lives, works or attends school in the 12 Central Florida Counties.