During any conservatorship, including Eastern Financial Florida Credit Union's, NCUA said it considers all options such as a merger or liquidation, ultimately choosing the one that will be the least costly.
NCUA spokesman John McKechnie said it is premature to say that the merger will happen and as with all proposals, is subject to the agency's approval.
"The NCUA Board has not approved a merger of Eastern Financial Florida Credit Union with Space Coast CU, or any other institution at this time," McKechnie said. "During any conservatorship, NCUA does not confirm or deny merger applications; merger, liquidation or return to member control are all options we consider. The least costly option for the NCUSIF will be determined, and a decision will be made."
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The $1.6 billion Space Coast Credit Union announced yesterday that it had signed an agreement announcing its intent to merge with $1.6 billion Eastern Financial. A second agreement said the credit union would function as interim management for EFFCU until the time of a merger. NCUA place Eastern Financial in conservatorship on April 24 and appointed Space Coast to temporarily oversee the struggling credit union. Senior managers were at Eastern Financial yesterday to begin assessing each of the financial institution's departments.
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