CFE Federal Credit Union Signs Bank Purchase Deal
The acquisition is expected to expand the Florida credit union’s business loans, deposits and market share.
The $1.8 billion Central Florida Educators Federal Credit Union in Lake Mary, Fla. said Thursday it intends to buy the $174 million Fidelity Bank of Florida in Merritt Island.
Financial terms of the purchase deal were not disclosed.
This is the second credit union purchase of a bank in the Sunshine State in less than 10 days. Last week, Florida’s second largest credit union, the $8 billion VyStar Credit Union in Jacksonville, inked an agreement to buy the $279 million Citizens State Bank in Perry.
Established in 1990, Fidelity Bank of Florida almost exclusively focuses on business lending. FBOF operates two branches, employs 34 staff members and manages 2,735 active deposit accounts.
At the end of the third quarter, the bank posted $1.3 million in net income and an ROA of 1.05%, according to the FDIC.
FBOF also managed $144 million in deposits and $29.7 million in capital at the end of the third quarter.
“Fidelity has a track record of successful business lending in Central Florida,” Kevin Miller, CFE’s president/CEO, said. “The merger with Fidelity will further strengthen CFE’s own business lending and deposit activities, which have grown rapidly in recent years.”
The merger will also advance CFE’s strategic plan to expand its market share in Central Florida. The credit union operates 22 branches and employs 485 staff members who serve a membership of nearly 160,000. CFE is Florida’s ninth largest by assets and eight largest by members.
The transaction, which is subject to regulatory and FBOF shareholder approval, is expected to be completed in the third quarter of 2019.