First Florida Credit Union on Friday said it recently signed a letter of intent to merge with Florida Baptist Credit Union. Both CUs are based in Jacksonville, Fla.
The two sides characterized the pending deal as a "partnership" that would provide members of $23 million Florida Baptist Credit Union with access to the resources of one of Florida's largest and fastest-growing member-owned financial institutions. If approved, it would mark $716 million First Florida CU's second merger in two years.
Management for both credit unions cited 2015 data from CUNA stating the number of such credit union mergers is anticipated to increase over the next few years due to greater regulatory compliance burdens from the Consumer Financial Protection Bureau, which pose greater challenges for smaller credit unions.
The two CU noted during the first quarter of 2015, there were 89 fewer credit unions nationwide – the most rapid decline since the first quarter of 2002.
Aside from relief from regulatory pressures, leaders of Florida Baptist Credit Union said the proposed merger would bring many new benefits for its 2,066 members.
"I am extremely excited about the added services and branches the merger will provide our members," Troy McGee, Florida Baptist CU board member, said in a statement. "This is definitely a win-win for everyone."
Officials said the merger would provide Florida Baptist CU members with access to First Florida's statewide network of branches, as well as improved online and mobile banking services. Expanded loan products, opportunities for additional community outreach and the capacity for larger church loans also would result, they said.
The proposed merger requires approval from the Office of Financial Regulation, NCUA and the members of Florida Baptist Credit Union. The membership vote is tentatively scheduled for April, and credit union leadership anticipates finalizing the merger in May.
If approved, the partnership would create an institution ranked third in Northeast Florida and among the top 18 Florida-based credit unions with more than 56,000 members and more than $740 million in assets.
The combined credit union would operate under the First Florida Credit Union name and be led by First Florida CEO Brent Lister and the First Florida board of directors. Florida Baptist Credit Union employees will be welcomed to the First Florida team.
The combined credit union would serve residents in Baker, Bradford, Broward, Clay, Duval, Flagler, Franklin, Gadsden, Hillsborough, Jefferson, Leon, Liberty, Madison, Miami-Dade, Nassau, Orange, Seminole, St. Johns, Taylor, Wakulla and Union Counties. Select employee and membership groups also will be available for membership, including state of Florida and CSX Transportation employees and their immediate families, as well as members of Florida-based Southern Baptist churches and their immediate families.
