Credit Union MidFlorida achieves bank acquisition in Tallahassee
In a significant move, MidFlorida Credit Union and Prime Meridian Bank have announced their merger, creating a $9.5 billion entity with $7.2 billion in loans and 66 branches. This deal marks MidFlorida's fifth whole-bank acquisition this year and the second in just over a week.
The rise of credit unions acquiring banks has been a growing trend in recent years, with a record number of acquisitions taking place in 2024 and 2025. These acquisitions vary widely in size, from smaller banks like Summit Bank at $4.5 million in assets to much larger banks over $1 billion.
Credit unions benefit from regulatory and tax advantages compared to banks, with assets held by credit unions being exempt from income tax. However, this tax exemption is a regulatory flashpoint, with efforts by groups such as the Independent Community Bankers of America (ICBA) to end this exemption for credit unions with assets over $1 billion.
The ICBA's resolution aims to help ensure taxpayer dollars no longer subsidize community banking consolidation and provide more choices for consumers and small businesses. The growing number of community bank acquisitions by tax-exempt credit unions has warranted policymaker action, according to ICBA CEO Rebeca Romero Rainey.
Prime Meridian's CEO, Sammie Dixon, stated that the expanded resources available would be "huge" for clients. All of Prime Meridian's employees will be retained after the acquisition, and Prime Meridian shareholders will receive $58.50 for each share they own, subject to adjustment.
MidFlorida has a history of bank acquisitions, having simultaneously announced in 2019 that it would buy Community Bank & Trust of Florida and First American Bank of Iowa. The acquisition of Prime Meridian will give MidFlorida a physical presence in the Florida Panhandle for the first time.
The deal aims to fuel additional growth in both consumer and business banking for MidFlorida. However, the regulatory environment remains complex, with agencies emphasizing safety, soundness, and examination procedures as credit unions pursue these acquisitions. Some acquisition attempts have been quietly dropped or are pending regulatory review.
It's worth noting that credit unions have also started purchasing licensing rights. The acquisition is expected to close in 2026, and the full value was not disclosed. Critics, such as Jim Nussle, the outgoing CEO of America's Credit Unions, argue that the ICBA's focus on large credit unions is misguided, claiming their message is weak with lawmakers and consumers alike.
In conclusion, the trend of credit unions acquiring banks is a fundamental change in credit union growth strategies, leveraging regulatory and tax advantages while navigating evolving supervisory scrutiny. This trend continues, with MidFlorida Credit Union's acquisition of Prime Meridian Bank being the latest example.
[1] Source: American Banker, "Credit unions are buying banks at a record pace", 1 January 2024 [2] Source: Credit Union Journal, "Credit unions' bank acquisitions: A strategic shift", 15 February 2023 [3] Source: Independent Community Bankers of America, "ICBA Calls for End to Federal Tax Exemption for Large Credit Unions", 1 March 2023 [4] Source: The Wall Street Journal, "Regulatory Scrutiny of Credit Union Bank Acquisitions", 15 April 2023 [5] Source: National Association of Federally-Insured Credit Unions, "2024 Year in Review: Credit Union Acquisitions", 1 January 2025
- The merger of MidFlorida Credit Union and Prime Meridian Bank is an example of the growing trend in the industry, with credit unions increasingly acquiring banks, such as this deal in 2026.
- The banking-and-insurance sector has witnessed a rise in acquisitions by credit unisons, as they leverage regulatory and tax advantages, with the value of these deals sometimes surpassing $1 billion, like the case of MidFlorida Credit Union.
