DALEVILLE, Ala.–All In Credit Union said it has entered into a purchase and assumption agreement to acquire five branch locations of Louisville, Ala.-based 22nd State Bank.
The branches are located in the Alabama markets of Brewton, Clayton, Eufaula, Geneva and Louisville.
Terms of the deal were not disclosed.
According to a statement from the credit union, upon consummation of the transaction 22nd State Bank will relocate its charter to Mobile, Ala., and will continue to operate as an independent community bank through its two locations in greater Mobile.
The $2.98-billion All In said it has agreed to assume certain deposit liabilities and to acquire certain loans, as well as cash, real property, personal property and other fixed assets associated with the branches, an that additional information will be provided to the bank’s customers in “the near future.”
As of October 31, 2023, the deposit and loan balances associated with the transaction were approximately $145 million and $130 million, respectively.
Expanding ‘Presence’
“We are excited to acquire these five branch locations from 22nd State Bank,” said All-In CU CEO Bobby Michael. “This move allows us to expand our presence in our home base of south Alabama. We look forward to welcoming those 22nd State Bank employees and customers associated with the Branches to the All In family.”
The credit union is located approximately 40 miles south of the bank’s headquarters.
“Going forward, this transaction will more closely align 22nd State Bank’s geographic footprint with our strategy to be a community bank serving Alabama’s Gulf Coast region,” said the bank’s CEO, Steve Smith. “22nd State Bank will continue as an independent community bank chartered and headquartered in Mobile and we look forward to serving our ongoing customers through our two locations in greater Mobile.”
About the Transaction
The transaction is expected to close no later than the third quarter of 2024.
All In was advised in the transaction by Honigman LLP as legal counsel. Olsen Palmer LLC served as 22nd State’s financial advisor while Jones Walker LLP served as its legal advisor.
Michael Bell, the pioneer of credit union purchases of banks, and a partner and co-chair of the Financial Institutions Practice Group at Honigman, told CUToday.info that interest in CU purchases of banks remains high.
"As I mentioned in previous CUToday.info reports, I expect high activity levels in 2024,” said Bell, who has been involved in more than 50 whole-bank agreements, plus additional bank branch purchases. “This announcement is the first of multiple announcements to come soon. The market is screaming for consolidation and win-win transactions between community banks and credit unions.”