Georgia’s Own Credit Union, a $2.3 billion institution based in Atlanta, Ga., said it has entered into a definitive agreement to acquire Fayetteville-based State Bank of Georgia.
The parties said this transaction marks the first time a Georgia state-chartered credit union will acquire a Georgia state-chartered bank.
The deal, which has been approved by boards of both entities, will be structured as an asset purchase and is expected to close during the second quarter of 2018, subject to all required regulatory requirements and approvals, and the approval of State Bank of Georgia’s shareholders and the fulfillment of all customary closing conditions.
“We are thrilled that State Bank of Georgia has chosen to partner with Georgia’s Own, as we feel their extremely high standards of service and commitment to member prosperity so perfectly complement those of our own,” said Dave Preter, president and CEO of Georgia’s Own CU in a statement. “It is evident in the relationships that they’ve established with their customers, their employees, and the Fayetteville community that they will be an invaluable piece of our growth as we continue to expand our operations across the state.”
In connection with the deal, State Bank of Georgia will wind down its operations and customers of State Bank of Georgia will have the opportunity to become members of Georgia’s Own CU.
Lacy Curry, acting chairman of the board at State Bank of Georgia, stated: “We are excited to bring our valued customers the opportunity to bank with Georgia’s Own, in addition to making available more extensive loan options, lower loan rates, higher deposit yields and a broader service platform.”
Curry added that the combination will provide “significant synergies, scalability and other benefits to our community and customers.”
A first for the state
Michael Bell, an attorney with from Howard and Howard Attorneys PLC, a legal firm based in Royal Oak, Mich., advised Georgia’s Own CU on the acquisition.
“This will be the first deal for a Georgia State Charted credit union,” Bell told Credit Union Journal. “Past deals have been done in Alabama and Florida, and have even involved the purchase of a Georgia Bank by an Alabama credit union.”
Bell also said that he expects to announce at least one more similar deal in the Southeast before the end of 2017.
Georgia’s Own CU posted net income of about $8 million last year, after recording net income of about $7.3 million in 2015.