TAMPA, Fla.—What would have been the biggest bank acquisition by a credit union to date has been called off, due in part to the coronavirus pandemic.
The $746-million Apollo Bank, headquartered in Miami, and $10.4-billion Suncoast Credit Union in Tampa have mutually terminated a planned merger announced in December of 2019, the Miami Herald reported.
The decision to withdraw the merger application with NCUA follows a series of coronavirus-related regulatory delays, according to the Miami Herald, adding the agency did not respond to a request for comment.
Apollo chairman and CEO Eddy Arriola said he determined it was in the best interest of Apollo’s investors and employees to preempt the delays. He came to an agreement with Suncoast to call off the deal, terms of which were not disclosed.
“Given the events of the last 30 to 60 days...the position of the regulatory bodies changed as it relates to this deal,” Arriola told Herald. “And then it became quite clear that we weren’t going to be able to close on the time frame expected.”
Kevin Johnson, Suncoast president and CEO, said there was just too much uncertainty to press on with the deal.
“There’s a wide range of [economic] possibilities here,” Johnson told the Herald. “Anyone who tells you how deep this recession is going to be is just not being honest.”
Arriola and Johnson said the news in no way reflects changes to the financial position of either Suncoast Credit Union or Apollo Bank.