ATLANTA—Georgia’s Own Credit Union here has agreed to purchase the $686-million Vinings Bank, based in Smyrna, Ga. CUToday.info was told that more CU acquisitions of banks will be announced in the next 30 days.
It is the second time the $3.4-billion Georgia’s Own has bought a bank, after acquiring the $90-million State Bank of Georgia, based in Fayetteville, in 2017.
“We are thrilled at the opportunity to partner with Vinings Bank,” said Georgia’s Own Credit Union’s President/CEO Dave Preter in a released statement. “We are committed to making this venture a positive one for everyone involved. Through this alliance, we feel confident that we can deliver added value and exceptional products and services to our members and the community.”
Added J. Dan Oliver, chairman and CEO of Vinings Bank, “Our combination with Georgia's Own Credit Union will allow the combined organization to better meet the needs of a competitive marketplace and continue to deliver products and services to a broader geographic region of Georgia while handling increased capital needs of our clients.”
Established in 1934, Georgia’s Own currently operates 30 branches in Georgia and has approximately $3 billion in deposits and $371 million (10.84%) in net worth. Georgia’s Own reported net income of $24.6 million in 2021, according to its latest Call Report.
Vinings Bank made $9 million in 2020 and $11.4 million through September of 2021, according to FDIC data.
Vinings operates two banking offices in Smyrna and Alpharetta, Ga., respectively. As of Dec. 31, 2021, the bank had total deposits of approximately $630 million and total equity of approximately $49.6 million.
The agreement has been unanimously approved by the boards of directors of both organizations. The acquisition of the transferred balance sheet is expected to close during the second half of 2022 or the first half of 2023, and is subject to approval by Vinings’ shareholders and federal and state regulatory agencies, the organizations said.
Georgia’s Own said it plans to retain all employees of Vinings after the acquisition.
“This is the first of many you should hear about in the next 30 days or so. The pace has quickened remarkably. Expect another deal in the Southeast very soon,” said Michael Bell, a partner and co-chair of the Financial Institutions Practice Group at Honigman, LLP, which is representing Georgia’s Own. Bell, the pioneer of credit union purchases of banks, has been involved in more than 40 whole-bank agreements, plus additional bank branch purchases.
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