JACKSONVILLE, FLA. — State Employees Credit Union has proposed merging into First Florida Credit Union to create an institution with more than $700 million in assets and nearly 60,000 members.
Both credit unions have a lengthy presence in the Sunshine State, with $299 million SECU chartered in 1937, and $408 million FFCU charted in 1950.
The two said a partnership would result in a larger institution with expanded products and services for their "respective growing memberships." The new CU reportedly would be among the top 20 credit unions in Florida.
The two CUs recently signed an "intent to merge" agreement. The proposed merger requires approval from the Office of Financial Regulation, the NCUA and the members of State Employees Credit Union. The SECU membership vote is scheduled for June, and the credit unions said they anticipate the merger will be finalized in July.
In its most recent call report, First Florida said it had $3.1 million in net income after assessments in 2013. FFCU's net worth ratio was 13.41% ("well capitalized"). SECU said it had $7,666 in net income from operations, but reported a loss of $179,746 after paying $187,412 to the NCUSIF. SECU's net worth ratio was 20.1% ("well capitalized").
Chris Boivin, a spokesperson for the management team planning the partnership, said in a statement: "These are two financially healthy institutions with similar assets coming together to expand our branch footprint in key markets throughout the state. Our products and services will also be expanded, and we will be able to focus on innovations that enhance the overall member experience."
As is typical for a credit union merger, the two CUs say no layoffs are planned.
The leadership team of the combined institution is scheduled to include senior managers from both FFCU and SECU. FFCU CEO Brent Lister would serve as CEO of the new credit union, overseeing strategic direction. Paul Numbers Jr., current CEO of SECU, would serve as president and oversee operations.
The board of directors from each credit union would combine to form a single new governing board, the two CUs said.
