TUSCALOOSA, Ala.—The $1.3-billion Alabama Credit Union has agreed to purchase $39-million Security Federal Savings Bank in Jasper, Ala.
The all-cash deal is expected to close no later than the first quarter of 2022, reported ACU, which did not disclose financial terms.
“We are very excited that Security Federal has agreed to join with Alabama Credit Union, bringing together two organizations that have a shared philosophy of putting our members and customers first,” said ACU President and CEO Steve Swofford. “This is another step in our plan to enhance the member value and experience for our many existing members that live or work in Walker County. We also look forward to welcoming Security Federal customers as new members of ACU and believe they will appreciate our approach of providing exceptional personal service along with additional financial products. Security Federal’s customers will see familiar faces when they visit the new ACU office, as members of the Security Federal staff will be joining ACU’s staff.”
‘Shared Values’
Added Todd Thompson, president and CEO of Security Federal, “We’re thrilled to join forces with Alabama Credit Union. We share many values and business philosophies that will enable this agreement to be a win for all parties involved. And especially for our customers who can look forward to expanded solutions and convenience while enjoying the same friendly service they’ve come to expect here in Jasper. It was also extremely important for us to partner with an organization as committed to supporting the local community in various ways, and Alabama Credit Union certainly has that reputation across the state.”
The transaction has been unanimously approved by the boards of both institutions, and is awaiting bank shareholder and state and federal regulatory approvals. ACU has 105,000 members with 33 branches across the state of Alabama and into north Florida.
Security Federal has been marginally profitable, making $40,000 in 2020 and $39,000 through March of 2021.
A ‘Win-Win’
“This is a perfect example of a win-win transaction for the buyer and seller,” said Michael Bell, the pioneer of CU purchases of banks and a partner and co-chair of the Financial Institutions Practice Group at Honigman, LLP, which is representing ACU. “The seller’s customers, employees and community get a great partner in Alabama CU.”
Bell has been involved in more than 40 whole-bank agreements, plus additional bank branch purchases.
“Things are very active at the moment, and this should be the first of a few new deals that will be announced in rapid succession,” added Bell.