BIRMINGHAM, Ala.– Avadian Credit Union said it has entered into an agreement to acquire Citizens State Bank of Vernon, Ala., the banking subsidiary of Citizens Southern Bancshares, Inc.
The transaction will be structured as a purchase-and-assumption transaction, and the consideration will be all-cash, the credit union said. Other financial terms were not disclosed. Vernon, Ala. is approximately 95 miles west of Avadian’s Birmingham headquarters.
Founded in 1977, Citizens State Bank has assets of $85 million and a “legacy of serving businesses, individuals and communities in Lamar County, Ala., and surrounding areas. Upon completion of the transaction, Avadian said it will have total assets of approximately $1.2 billion and 19 locations across Alabama.
The transaction remains subject to customary conditions, including the approval of Citizens Southern Bancshares, Inc.’s shareholders and the receipt of required regulatory approvals.The transaction is expected to close no later than the third quarter of 2022, according to Avadian.
‘High Quality, Low Risk’
“We are delighted to partner with Citizens State Bank, especially as they share our focus on running a high-quality, low-risk institution with a strong commitment to both the community and to our members and customers,” said Linda Cencula, president and CEO of Avadian. “This transaction will also expand our presence in Alabama as we move into the western part of the state.”
Added Anthony Burnett, president and CEO of Citizens State Bank,“We are excited about joining the Avadian family as their culture and commitment to local communities are very similar to our own. This combination is an attractive fit for our bank offering a comprehensive set of products and services to ou
r customers and an expanded geographic diversification. The combined strength of the institutions will enhance our proven ability to serve our community while strengthening the benefits to our customers and employees.”
The Advisors
Avadian was advised in the transaction by the law firm of Honigman LLP. Olsen Palmer LLC served as Citizens State Bank’s financial advisor, while Jones Walker LLP served as Citizens State Bank’s legal advisor.
Active Market
“I believe this will be the last announced deal in 2021, but there are quite a few behind it ready to be announced in 2022," said Michael Bell, the pioneer of credit union purchases of banks, and a partner and co-chair of the Financial Institutions Practice Group at Honigman, LLP. "The marketplace is the most active I have seen in my career."
Bell has been involved in more than 40 whole-bank agreements, plus additional bank branch purchases.