Financial institution MidFlorida Credit Union acquires Tallahassee-based bank
In a significant shift in the US financial landscape, credit unions are increasingly acquiring banks, marking a trend that has accelerated in recent years. This was highlighted by the recent merger announcement between MidFlorida Credit Union and Prime Meridian Bank.
The merger, set to close in 2026, will create a combined entity with $9.5 billion in assets and 66 branches. This will be a first for MidFlorida, as the merger will give them a physical presence in the Panhandle of Florida for the first time, with four new locations: two in Tallahassee, one in Lakeland, and one in Crawfordville, three of which are in the Big Bend area.
The full value of the transaction was not disclosed, but Prime Meridian shareholders will receive $58.50 for each share they own. Notably, MidFlorida has announced it will retain all of Prime Meridian's employees.
This trend towards bank acquisitions by credit unions reflects a strategic shift towards inorganic growth, allowing them to expand beyond traditional merger strategies and reach new markets while maintaining community values. For instance, the recent acquisition of Summit Bank by San Francisco Federal Credit Union illustrates credit unions’ increasing sophistication and willingness to pursue bank acquisitions as a growth strategy.
This trend is not unique to MidFlorida. In a similar move, Salem, Oregon-based Maps Credit Union announced a bank acquisition on April 14. The record activity in recent years is evident in the numbers. In 2024, credit unions completed 21 bank acquisitions, the highest number ever recorded, acquiring over $10.9 billion in assets, which accounted for 17% of all bank acquisitions that year. This momentum has continued into 2025, with at least eight deals underway and seven whole-bank acquisitions already announced.
However, this trend has not been without controversy. The Independent Community Bankers of America (ICBA) has expressed skepticism about bank acquisitions by credit unions, citing the recent deal as an example. The ICBA introduced a resolution in March calling on lawmakers to end the federal tax exemption for credit unions with $1 billion or more in assets or to establish a tax uniformity between credit unions and community banks that pay taxes.
Jim Nussle, the outgoing CEO of America's Credit Unions, blasted the ICBA for targeting only the largest credit unions. Nussle accused banks of taking advantage of taxpayers for their own profit, including enjoying Subchapter S subsidies and making risky decisions that harm consumers. Romero Rainey, on the other hand, said the move would "help ensure taxpayer dollars no longer tilt the competitive marketplace, subsidize community banking consolidation, and result in fewer choices for consumers and small businesses."
Michelle Bowman, the Federal Reserve governor, noted a disparity in regulation between credit unions and banks. A Morning Consult survey found that 62% of U.S. adults say credit unions that operate like banks should pay similar taxes.
In conclusion, the rise of credit union bank acquisitions is reshaping the US financial landscape. With more acquisitions on the horizon, it seems this trend is here to stay, bringing both opportunities and challenges to the industry.
[1] Source: Credit Union National Association (CUNA) [2] Source: American Banker [3] Source: National Credit Union Administration (NCUA)
- This trend of credit unions acquiring banks, such as the merger between MidFlorida Credit Union and Prime Meridian Bank, represents a shift in the US business landscape, as it allows credit unions to expand their finance sector influence while maintaining community values.
- As more credit union-bank mergers continue to occur, such as the recent acquisition of Summit Bank by San Francisco Federal Credit Union, it becomes evident that this strategy is a way for credit unions to grow beyond traditional methods and increase their presence in various industries.
