LGE Community Credit Union, a $1.27 billion institution based in Marietta, Ga., announced that it has entered into a definitive agreement to purchase Georgia Heritage Bank, a community bank with branches in Paulding and Cobb County, Georgia.
The boards of directors of both LGE Community CU and Georgia Heritage Bank have unanimously approved the transaction.
The bank, which is based in Dallas, Ga. – about 18 miles east of LGE Community CU’s headquarters – also operates a branch in Marietta.
The transaction is expected to close in the third quarter of 2018, subject to approval by Georgia Heritage Bank’s shareholders, receipt of regulatory approvals and other customary closing conditions.
“With LGE Community Credit Union and Georgia Heritage Bank coming together, it will deepen LGE’s commitment to business and commercial banking,” said Chris Leggett, president and CEO of LGE Community CU. “We look forward to transitioning Georgia Heritage Bank’s customers to LGE members so they can see firsthand we are a member-owned not-for-profit cooperative, we pride ourselves on staying dedicated to improving the financial well-being of our members through economically priced and conveniently delivered services, caring personal service and sound financial management.”
Genevieve Cole, president and CEO of Georgia Heritage Bank, stated: “With this transaction we are pleased to know that our customers will have access to more branches and services making it more convenient and easier for them to bank. LGE has built a reputation in the community as one of the leading financial institutions dedicated to giving back to the people in the area.”
LGE Community Credit Union was advised and represented by Michael M. Bell of the law firm Howard & Howard of Royal Oak, Mich.
Bell told Credit Union Journal by email that this transaction represents LGE Community's first bank acquisition. "They absolutely intend on doing more. An optimal non-organic growth strategy involves building a team and system to do multiple transactions," he added.
According to a regulatory filing, Georgia Heritage Bank had total assets of about $94.7 million and total liabilities of about $83.6 million as of Dec. 31, 2017.
Meanwhile, LGE Community posted net income of about $12.1 million in 2017, up from about $9.1 million in the prior year.
This is the fourth time so far this year a credit union has purchased a bank.