The Florida Office of Financial Regulation on July 25 approved the application to merge and consolidate the assets and liabilities of Friends Bank (New Smyrna Beach, FL) into and with Fairwinds Credit Union (Orlando, FL).
The approval order noted that Fairwinds CU's field of membership already included all persons who live and work in Volusia County. In addition, Fairwinds has a low-income designation, which permits the credit union to accept deposits from nonmembers. Therefore, all depositors of Friend Bank, even those depositors that do not not live or work in Volusia County, will be able to maintain their deposits with Fairwinds after the merger is completed.
Fairwinds CU stated that it does not intend to acquire and retain Friends Bank stock or power to conduct commercial banking business under Friends Bank charter.
Within six months after the merger is consummated, Fairwinds will need to verify whether depositors and borrowers had opted-in to becoming members of Fairwinds Credit Union, did not opt-in but maintain nonmember deposit accounts with Fairwinds, or whose loans have been transferred to another financial institution, closed, or paid off their loans.
Fairwinds will need to divest any nonconforming activities based upon a time established by the regulator.
Before the merger is consummated, the merger must be approved by the National Credit Union Administration and the Federal Deposit Insurance Corporation.
To read the final approval order, go to the Florida Office of Financial Regulation website and click on Final Administrative Orders, which is under Our Services.
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