A credit union CEO has confirmed with Credit Union Times that it was approached by NCUA as a possible merger partner with the financially troubled, $1.6 billion Eastern Financial Florida Credit Union.
The CEO said NCUA has "asked every large credit union in the Southeast" about a merger with the Miramar, Fla.-based Eastern Financial.
"It's a normal procedure," the CEO said of NCUA seeking out potential CU merger candidates. "As a courtesy, NCUA will look for partner credit unions in the area."
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NCUA Spokesman John McKechnie would only say that any talk of a possible takeover "is a supervisory matter" and is therefore, confidential.
"Generally, we don't talk about those things until there's something substantive," McKechnie said. "That's a supervisory matter. We're not talking about it."
"There's really nothing I can share," said Linda Charity, director of the division of financial institutions at the Florida OFR, which issued a cease and desist order in mid-March against Eastern Financial to address a number of troubled areas. "Management is working to comply."
Eastern Financial would not comment either, sticking by a April 7 statement that said OFR is "working closely [with the CU] on a roadmap to address the issues facing us."
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