Florida’s Largest Credit Union Makes Industry’s Largest Bank Buy
The proposed Apollo Bank purchase would open the South Florida market for Suncoast Credit Union.
Florida’s largest credit union, the $10.4 billion Suncoast Credit Union in Tampa, plans to buy the $746 million Apollo Bank in Miami, making it the financial industry’s largest credit union bank acquisition to date.
The signing of a definitive agreement was announced on Tuesday. Financial terms of the deal were not disclosed.
If approved by the bank’s shareholders and regulators, the acquisition will allow Suncoast to expand into South Florida, that the financial cooperative described as the most populous region of the state with more than six million residents, the fastest growing market for small businesses and an established and growing Hispanic community.
“The acquisition allows Suncoast to provide the value of credit union membership to a large underserved population,” the credit union said in a prepared statement.
Apollo Bank, which specializes in commercial lending, managed $656 million in deposits and capital of nearly $80 million at the end of the third quarter. It posted a net income of $5.4 million and an ROA of 1.01%, according to financial reports filed with the FDIC.
The bank serves more than 8,000 clients, employs 100 staffers, and operates five branches in Miami’s Brickell Financial District, Doral, Coral Gables, Kendall and Hialeah.
“Nearly a decade after launching, we realized that partnering with a larger institution would put our team in position to offer even more products and services to clients while allowing our bank to scale,” Apollo Bank CEO and Chair Eddy Arriola said. “After considering a range of options, it became clear that Suncoast Credit Union was the right partner. Suncoast is a Florida market leader that shares Apollo Bank’s deep-rooted commitment to client service and community involvement.”
Arriola will serve as Suncoast’s South Florida market president.
“We look forward to the Apollo team joining our organization and continuing to serve their commercial customer base,” Suncoast CU President/CEO Kevin Johnson said. “Bringing the benefits of membership offered by Florida’s largest credit union to the diverse cultural population in Miami is a privilege that we take great pride in sharing.”
The boards of both financial institutions previously approved the purchase, which is expected to close in 2020.