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Jefferson Financial FCU to buy bank branches

Jefferson Financial Federal Credit Union in Metairie, La., has agreed to buy three branches in Alabama from Synovus Financial in Columbus, Ga.

The $32 billion-asset Synovus said in a press release Wednesday that the $947 million-asset credit union will buy branches in Mobile and Daphne. The credit union will gain $138 million in loans and $107 million in deposits.

The credit union will pay a $14.5 million deposit premium. The sale is expected to close in the first quarter.

The Burke Group and Alston & Bird advised Synovus. Howard & Howard advised the credit union.

Jefferson Financial is the latest in a string of credit unions involved in deals with banks. The Tacoma, Wash.-based Sound Credit Union recently agreed to buy Bank of Washington.

More and more credit unions have used bank purchases as a growth strategy in recent years. In August, Wisconsin-based Superior CU completed its acquisition of Dairlyand State Bank. Earlier this summer, IBM Southeast Employees' CU purchased a Florida-based bank.

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