The troubled $220 million Sarasota Coastal CU, hit by loan losses tied to the housing recession in south Florida, may have found a new merger partner, the $650 million Achieva CU of Clearwater.
Announcement of "initial feasibility" talks leading toward a possible combination were disclosed Monday a little more than two weeks after a proposed merger with the $1.2 billion MidFlorida FCU of Lakeland came undone following a reported dispute over composition of the combined CU board.
In a statement, Gary Regoli, president/CEO of Achieva said the CU was starting a due diligence review of the planned merger this week and that the combination looks to benefit members since "our credit unions have similar values and philosophies that would make for a strong partnership."
The president/CEO of Sarasota Coastal, Tom Randle, who also is former secretary of the Florida Credit Union League, acknowledged last week the urgency in finding a merger candidate given the economic difficulties placed on his CU and other small CUs elsewhere by the NCUA corporate assessment.
"During these tough economic times, we need to be looking at mutually beneficial partnerships with strong, like-minded organizations like Achieva," said Randle in the press statement.