Bank deal to boost Central Florida Educators FCU's business lending

Central Florida Educators Federal Credit Union has agreed to buy Fidelity Bank of Florida in Merritt Island.

The institutions said Thursday that the merger will help expand the $1.9 billion-asset credit union’s presence in central Florida.

Kevin Miller, Central Florida Educators' president and CEO, said in a press release that Fidelity has a history of “successful business lending” in central Florida and that the merger will “further strengthen” the credit union's business lending and deposit activities.

In 2017, the Small Business Administration designated Fidelity as a certified lender and a preferred lender, according to the SBA.

Central Florida Educators is based in Lake Mary, which is just north of Orlando, and has 22 branches and more than 155,000 members across the central part of the state.

Fidelity has two branches and $174 million in assets.

“Fidelity has a history of providing great service to the businesses and residents of Brevard and Seminole counties,” Miller said. “We are pleased to welcome Fidelity’s customers and employees to the CFE family.”

Michael Bell, a lawyer at Howard & Howard who advised Central Florida Educators, declined to disclose how much the credit union will pay as part of the all-cash deal.

The proposed merger, which needs to be approved by Fidelity shareholders and regulators, is expected to close in the third quarter.

Central Florida Educators' net income for the first nine months of 2018 rose 57% from a year earlier, to $13.1 million.

Florida has seen a number of credit union-bank mergers. In October, Achieva Credit Union of Dunedin, Fla., bought Preferred Community Bank, a Florida state-chartered bank in Lee County. Earlier this month, VyStar Credit Union in Jacksonville, Fla., agreed to buy Citizens State Bank in Perry, Fla.

“I am working on deals in many states, but Florida certainly is a great spot for these transactions,” Bell said.

Florida “has the perfect mix of strong credit union buyers and willing bank sellers," Bell added. "Professionals in Florida who are engaged in seeking buyers for banks have embraced the inclusion of credit unions in these deals if the seller is seeking all cash. They realize that one of two things will happen: The credit union will win the bid or the overall price will be raised, both of which are positive for a seller.”