MELBOURNE, Fla. — Space Coast Credit Union reported a strong second quarter, net income of almost $31 million, as it swallows Eastern Financial Florida Credit Union in the biggest credit union merger ever.
The acquisition of the failed South Florida credit union doubled the assets and the deposits of Space Coast, to $3.3 billion and $2.9 billion, respectively, but also cut its net worth, from 11.2% to just 6.26%. That's under NCUA's 7% mark for a well-capitalized credit union, but just above the 6% mark which is considered to be adequately capitalized.
Eastern Financial, taken over by NCUA on April 24 amid large losses, had just $20 million of net worth, a ratio of just over 1%, by the time Space Coast CU agreed to acquire it two weeks later. Eastern Financial had more than $1.6 billion in assets and was Florida's third-largest credit union.
Eastern, chartered in 1937 to serve employees of Eastern Airlines, fell victim to the southern Florida real estate crash, racking up a $113.5 million loss for 2008.
