Florida CU Says New Bank Buy Will Boost Market Share & Commercial Portfolio
FAIRWINDS Credit Union announces a deal to purchase Citizens Bank of Florida by year’s end.
Just a week after two credit unions announced bank acquisitions, the $3.7 billion FAIRWINDS Credit Union said Thursday it intends to purchase the $489 million Citizens Bank of Florida in Oviedo.
Financial terms were not disclosed.
Founded in 1946, Citizens Bank of Florida serves 5,000 customers and specializes in commercial lending. Its 65 employees operate two branches in Oveido and four branches in Winter Park, Longwood, Sanford and DeLand.
According to FAIRWINDS, when the deal is completed, it will expand the credit union’s market share in Seminole County to 10.25% and boost its commercial portfolio from its current $387 million to more than $600 million.
The bank’s commercial and industrial loans were $46.1 million, according to its June 30 Consolidated Reports of Condition and Income filed with the FDIC. Citizens Bank also manages 655 small business loans totaling $91 million.
At the end of the second quarter, the bank posted $2.3 million in net income and $41 million in capital.
“FAIRWINDS has a large consumer portfolio serving over 200,000 members, while Citizens Bank of Florida excels in their commercial portfolio, in addition to serving consumer accounts,” FAIRWINDS COO Phil Tischer said. “The transaction will strengthen our established and growing commercial banking team and product offering.”
The acquisition, subject to regulatory and shareholder approval, is expected to be completed in December.
This is the ninth credit union bank acquisition deal this year. In 2020, there were six credit union bank buy agreements.
Last week, the seventh and eighth acquisition agreements were announced by the $3.7 billion Royal Credit Union in Eau Claire, Wis., which signed a definitive agreement to acquire the $438 million Lake Area Bank in Linstrom, Minn., and the $1 billion Orion Federal Credit Union in Memphis, Tenn., said it inked a definitive agreement to buy the $751 million Financial Federal Bank, also based in Memphis.
FAIRWINDS and Citizens Bank of Florida have a history of working together in the community.
In 2020, for example, FAIRWINDS and Citizens partnered to assist in the development of The Black Venture Fund. The non-profit organization exists to provide for the organizational support and business success of minority-owned businesses.
While the fund targets participants in the East Seminole County area, participation has been expanded beyond the original target areas. The fund is off to a solid start with the first group of businesses completing a 12-week program. FAIRWINDS said it will continue to support this fund.
“As an organization with deep roots in Seminole County, Citizens Bank of Florida shares FAIRWINDS’ values of commitment to community and putting our members and customers first,” FAIRWINDS President/CEO Larry Tobin said. “We look forward to welcoming Citizens Bank of Florida customers as new members of FAIRWINDS.”
FAIRWINDS’ 515 employees operate 31 branches throughout central Florida and serve more than 206,000 members.