TAMPA, Fla. – In move that will likely draw greater attention to credit union purchases of banks, Suncoast CU said it intends to buy the $746-million Miami-based Apollo Bank. One analyst expects similar and even larger deals will continue well into 2020.
The deal marks the largest bank acquisition by a credit union in U.S. history—and $10.4-billion Suncoast, the 10th-largest CU in the nation, is the biggest credit union to ever purchase a bank.
The bank has been profitable, making $8.9 million in 2018 and $5.4 million through September of this year.
Bank Has 5 Branches
Apollo Bank, which opened its doors in 2010, has approximately 100 employees and five branches in Miami’s Brickell Financial District, Doral, Coral Gables, Kendall and Hialeah markets. And as has been the case in a number of CU/bank acquisitions, the Suncoast CU is making the move in part to pick up commercial lending business and talent.
“The bank is deeply rooted in the business community with a strong emphasis on commercial banking,” Suncoast said in a statement. “This agreement supports the credit union’s mission and strategic growth goals, expanding the footprint into an important region of Florida. The area is home to the fastest-growing market for small businesses and an established and growing Hispanic community.”
The statement added the acquisition will allow Suncoast to provide the value of credit union membership to a large underserved population.
Statement from CU CEO
“We are pleased and enthusiastic to bring the value of Suncoast Credit Union to this important community,” said Suncoast Credit Union CEO Kevin Johnson. “Our excellent rates, low fees and community service will have a positive impact in South Florida. We look forward to the Apollo team joining our organization and continuing to serve their commercial customer base. 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.”
Statement from Bank CEO
Added Apollo Bank CEO and Chairman Eddy Arriola, who will serve as Suncoast’s new South Florida market president, “Apollo Bank has thrived by meeting the needs of South Florida businesses, delivering exceptional service, investing in our communities, and nurturing talent. 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. 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.”
The transaction is expected to close in 2020, subject to shareholder and regulatory approvals.
The Largest Deal
“This is the largest—buyer and seller—transaction to date by a large margin,” said Michael Bell, attorney and counselor with Royal-Oak, Mich.-based Howard and Howard, and pioneer of such deals.
“These sales continue to occur throughout the spectrum of financial institution size and I expect that to continue in 2020. So look for more large credit unions to buy banks and bigger banks to look to sell to CUs. Sellers and buyers continue to find merit in these transactions,” stated Bell, who is representing Suncoast in the transaction.