ATLANTA—The $2.5-billion Atlanta Postal Credit Union and its subsidiary Center Parc CU have agreed to purchase the $870-million Affinity Bank, based in Covington, Ga. The bank is headquartered approximately 35 miles east of the credit union.
APCU said it will purchase substantially all assets and assume all liabilities of Affinity Bank in an all-cash transaction, the credit union reported.
Affinity Bank was established in 2010 after beginning its life in 2002 as Atlanta Business Bank. On its website the bank notes it began as a commercial lender to certain industries, especially dentists. “So much so,” it states, “in some circles we are known as the nation’s dental bank.”
The transaction is expected to close during the fourth quarter of 2024 or the first quarter of 2025, subject to receiving all regulatory approvals, approval by Affinity shareholders and other customary closing conditions, the CU said.
Terms of Deal
Under the terms of the purchase and assumption agreement, APCU/Center Parc said it will pay Affinity Bank “sufficient cash” to have $22.50 per share in cash available for distribution to its shareholders, subject to potential increase for levels of tax payments. The sale price was not disclosed.
Affinity Bank had $6.7 million in net income in 2023 and $1.5 million through March of this year, according to FDIC data. Atlanta Postal posted $3.1 million in net income 2023, but recorded a $3.6 million loss through the first quarter of 2024, according to Call Report data. Capital stands at 13.85%.
Expansion Cited
According to the credit union, the acquisition will allow it to expand their reach throughout Atlanta and surrounding communities, as well as increase its “market base and expertise.”
“For nearly 100 years, Affinity Bank has successfully served both small businesses and individuals throughout Atlanta and the entire region,” Blake Graham, APCU/Center Parc president and CEO, said in a statement. “Through this agreement, we look forward to welcoming Affinity Bank’s customers as new members and exceeding their expectations in every way as we work to help them financially flourish. We are also excited to enter into this agreement as a way to drive our member-centric growth strategy forward.”
‘Share Our Core Values’
Added Affinity Bank President and CEO Edward J. Cooney in a statement, “During our proud history, Affinity Bank has been committed to serving our clients and local communities. Through a consistent level of superior quality service, our dedicated staff has grown a loyal commercial and retail customer base. We are very excited about joining the APCU/Center Parc team. APCU/Center Parc share our core values, and have demonstrated a similar commitment to their members, employees and the communities they serve.”
Advisors on Deal
Hovde Group, LLC acted as financial advisor to APCU/Center Parc and Honigman, LLP served as its legal counsel. Performance Trust Capital Partners, LLC served as financial advisor and provided a fairness opinion to Affinity, whie Luse Gorman, PC served as legal counsel to Affinity in the transaction.
More Acquisitions to Come
The pioneer of credit union purchases of banks, Michael Bell, a partner and chair of the Financial Institutions Practice Group at Honigman, said the pace of CU/bank buys is not slowing.
“The Southeast remains an exceptionally active area. You should expect to hear about more transactions soon, Community banks are voluntarily choosing to sell, and credit unions are choosing to participate in that free market,” Bell told CUToday.info.
Bell has been part of more than 60 whole-bank agreements, plus additional bank branch purchases.
Other Deals to Date in 2024
As CUToday.info reported earlier, other bank acquisitions announced by credit unions to date in 2024 include:
- The $1.2-billion Pima Federal Credit Union has agreed to purchase the $272-million Republic Bank of Arizona, based in Phoenix.
- The $4.9-billion American Heritage Federal Credit Union here has agreed to buy three branches of LINKBANK, which is headquartered in Camp Hill, Pa., the bank reported.
- The $4.7-billion TDECU in Lake Jackson, Texas, has agreed to buy the $1.2-billion Sabine State Bank and Trust, based in Many, La.
- The $1.9-billion Harborstone Credit Union in Lakewood, Wash., has announced plans to buy Mt. Vernon, Wash.-based SaviBank.
- The $2-billion Empeople Credit Union in Moline, Ill., acquired the $182-million TSB Bank in Lomira, Wis.
- Beacon Credit Union, Wabash, Ind., acquired Mid-Southern Savings Bank of Salem, Ind. for approximately $45 million.
- In Tacoma, Wash., the $2.9-billion Sound Credit Union here has agreed to buy $104-million Washington Business Bank, based in Olympia, Wash.
- The $2.9-billion Advia Credit Union, Kalamazoo, Mich., reached into Illinois with to purchase the $255-million NorthSide Community Bank.
- The $7-billion Hudson Valley Credit Union is purchasing the $593-million Catskill Hudson Bank in Kingston, N.Y., for $28.6 million.
- The $11.8-billion Global FCU in Anchorage, Alaska is buying the $1.5-billion First Financial Northwest Bank in Renton, Wash.
- The $7-billion Hudson Valley Credit Union here is purchasing eight locations from Boston-based Berkshire Bank.
- The $2.98-billion All-In Credit Union in Daleville, Ala. is buying five branches and the book of business from Louisville, Ala.-based 22nd State Bank.
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