OXFORD, Ala.—The $442-million AOD Federal Credit Union here has agreed to buy the Prattville, Ala., branch of Merchants & Farmers Bank of Greene County, the CU announced.
Under the agreement, AOD will acquire the branch location along with the majority of its deposit and loan accounts. The deposits and loans being transferred from the $123-million Merchants & Farmers Bank to AOD total approximately $15 million and $10 million, respectively. Merchants & Farmers will maintain operations at its headquarters in Eutaw.
The proposed transaction is subject to customary closing conditions as well as approval by applicable regulatory authorities. It is expected to be completed in the fourth quarter of 2025, the CU said.
“We are thrilled about the proposed acquisition of the Prattville branch,” said Virginia Bowen, CEO of AOD. “We have growth plans for the River Region and this allows our expansion to be immediate, and the branch is a natural extension with our existing field of membership in central Alabama. We are committed to serving markets such as Prattville and look forward to welcoming Merchants & Farmers’ River Region customers as the newest members of AOD.”
“We believe this transaction is a win-win for our bank and our customers,” said Daniel Garnand, chairman and CEO of Merchants & Farmers. “It allows us to better focus on our core market of Eutaw and Demopolis and ensures our customers in the River Region will continue to receive the same service they are accustomed to. We look forward to serving our ongoing Merchants & Farmers customers in our home markets and know that our River Region customers will enjoy becoming members of AOD.”
AOD was advised in the transaction by Honigman, LLP, as legal counsel. Olsen Palmer LLC served as Merchants & Farmers’ financial advisor while Jones Walker LLP served as Merchants & Farmers’ legal advisor.
“It's rewarding to be a part of completely voluntary transactions that are a win for all involved. A strong community in Alabama will continue to be served by a local institution, Main Street America wins here.” said Micheal Bell, a partner and chair of the Financial Institutions Practice Group at Honigman. “A wonderful community in Alabama will continue to be served by a superb financial institution.”
Bell has been part of more than 75 whole-bank agreements plus additional bank branch purchases.