LAKELAND, Fla. – In a landmark deal, MidFlorida CU has agreed to acquire six Tampa-area branches, 16,000 member accounts and $115 million in assets from Space Coast CU, the Melbourne, Fla., credit union giant.
The unprecedented acquisition represents a major expansion into the Tampa area for the $1.6 billion MidFlorida CU, which entered the market last year with its acquisition of Bay Gulf CU. That merger gave MidFlorida access to Hillsborough County’s east side, while the Space Coast deal will expand its presence to the county’s west side.
Financial terms of the deal were not disclosed.
MidFlorida said it plans to retain all existing staff at the three Hillsborough and three Pinnellas county branches after the transition.
The deal is subject to a vote by the affected members and approval by state regulators and will be facilitated by MidFlorida’s community field of membership, which was expanded in 2009 to include Hillsborough County. The one-time Polk County Teachers CU also serves Highland, Pasco, Okeechobee, Sumter and Hardee counties.
The $3 billion Space Coast CU said it decided to shed its Tampa branches after a review on how best to serve those members. “The options were to invest heavily in an expansion of the existing branch network, or to seek a partner who would make a long-term commitment to developing this area,” said Doug Samuels, president of Space Coast. “We began considering a spin-off option, but only with a credit union like MidFlorida.”
If approved, the purchase will give MidFlorida 35,000 members and 14 branches in Hillsborough, Pasco and Pinellas counties. The credit union currently has a total 150,000 members and 32 branches.
Both credit unions will host town hall meetings in early 2012 to field any questions the membership may have before they vote on the transition, which is expected to be finalized by March 31. If approved, the spinoff is planned for July 1.
