The recent acquisition of Prime Meridian Bank in Tallahassee by Lakeland-based MidFlorida Credit Union has put Florida in the forefront of states experiencing accelerated growth of mergers between credit unions and banks.
The Prime Meridian deal, which closed in March, is MidFlorida's third bank acquisition in the past seven years and its first since 2019 when it acquired Community Bank & Trust in Ocala and the Florida assets of Iowa-based First American Bank.
The merger expands the company's footprint into Florida's Panhandle for the first time while boosting its assets to $9.5 billion, employee numbers to 1,578 and operating branches to 66.
MidFlorida is now the third-largest Florida-based credit union in the state, following SunCoast Credit Union's $18.8 billion in assets and Vystar's $13 billion. (Our chart on page 20 has MidFlorida ranked fourth at the end of 2025 by total deposits rather than total assets.)
The merger of the two financial institutions was far removed from what would be considered a hostile takeover.
"We built a bank based on a culture of service to our clients, our team and our community," says Sammie Dixon, Prime Meridian's president and CEO. "We recognized the strength in being able to adapt to change, and it is fitting we now find ourselves in a position to bring physical locations to MidFlorida's operations. The opportunities for our employees, all of whom will be retained by MidFlorida, and the expanded resources available to our clients, are huge."
"This acquisition will provide branches in the market to fuel additional growth in both consumer and business banking." — Steve Moseley, MidFlorida's president and CEO
Prime Meridian's assets include two branches in Tallahassee, one in Crawfordville in Wakulla County and one in Lakeland.
"This acquisition will provide branches in the market to fuel additional growth in both consumer and business banking," says Steve Moseley, MidFlorida's president and CEO.
Despite the smooth transition of Prime Meridian into MidFlorida, credit union acquisition of banks is fraught with controversy.
Financial industry executives, federal and state regulators and lawmakers remain sharply divided on tax-exempt credit unions purchasing tax-paying banks.
Continued efforts by banking organizations to push Congress to pass legislation leveling the playing field and remove credit unions' tax exemptions have failed to gain any lasting traction.
Banks also are dealing with another burdensome trend, driven by the costs of buying and maintaining real estate and branches while struggling to compete with online fintech institutions.
Washington, D.C.-based Independent Community Bankers of America wants lawmakers to remove the tax exemptions for credit unions, especially large national credit unions such as Navy Federal, which has nearly $200 billion in assets.
The ICBA argues that credit unions' tax-exempt advantage is a major incentive for them to acquire smaller community banks.
Opponents of these mergers argue that these acquisitions represent an "outmoded tax exemption" and a departure from the original credit union mission.
Credit union organizations counter banker arguments by contending that they're more organic to the communities they serve and have closer, more durable relationships with their members. — By Carlton Proctor