DOTHAN, Ala.– Five Star Credit Union said it is reaching across state lines and acquiring Macon, Ga.-based OneSouth Bank, the $215-million banking subsidiary of OneSouth Financial of Blakely, Ga.
The deal will be structured as a purchase and assumption transaction and the consideration will be all-cash, according to Five Star Credit Union. Other financial terms were not disclosed. The bank is located approximately 180 miles northeast of the credit union.
The $773-milion Five Star said its assets will grow to $950-million when the deal is consummated, and will expand its branch network to 23 locations across lower Alabama and south and middle Georgia with the addition of OneSouth Bank’s 4 four in Macon, Blakely, and Leesburg, Ga.
“Five Star Credit Union and OneSouth Bank have over 140 years of combined service to members and customers in the southern parts of Alabama and Georgia,” said Bob Steensma, president and CEO of Five Star Credit Union. “We share similar values, and our partnership will reinforce the foundation for an extraordinary community financial institution that puts our members, employees, and communities first. We look forward to welcoming the OneSouth Bank team members and customers to the Five Star family.”
Deal to Close in 2024
The transaction has been approved by both boards but remains subject to customary closing conditions including the approval of OneSouth Financial, Inc.’s shareholders and the receipt of all necessary regulatory approvals, is expected to be completed by the second quarter of 2024, according to the credit union. The deal marks the third time Five Star has purchased a bank.
Shared ‘Philosophies’
“OneSouth Bank and Five Star share many philosophies that will enable this agreement to be a win for all parties involved. We are pleased that our customers can look forward to expanded products and solutions while enjoying the same friendly service they’ve come to expect from OneSouth,” commented Kim Davis Wilson, president and CEO of OneSouth Bank. “It was also extremely important for us to partner with an organization that shares our commitment to supporting the communities we serve, and Five Star certainly has that reputation across its footprint.”
Financial Advisors & Financials
Olsen Palmer LLC served as financial advisor to OneSouth Bank while Fenimore Kay Harrison LLP served as legal advisor. Honigman LLP served as legal advisor to Five Star Credit Union.
Five Star Credit Union has approximately 56,000 members. It reported $6.9 million in net income through June 30, with a robust net worth of 19%.
The pioneer of CU purchases of banks, Michael Bell, shared his outlook for these deals as 2023 begins to wind down.
“I expect a strong finish to 2023 in terms of deal announcements," said Bell, Bell, a partner and co-chair of the Financial Institutions Practice Group at Honigman, LLP. Bell has been involved in 45 whole-bank agreements, plus additional bank branch purchases.
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