ATLANTA– The $2-billion LGE Community Credit Union said it has entered into a definitive agreement to purchase Greater Community Bank, which has branches in Bartow, Floyd, and Gordon counties in Georgia. The $321-million bank is located 66 miles south of Atlanta in Rome, Ga.
LGE Community reported $15.1 million in net income through Sept. 30, with capital of 11.27%.
Greater Community Bank posted $3.582-million in net income as of the same date, with capital of 9.48%. Greater Community Bank reported net income of making $4.7 million in 2021, according to FDIC data.
The deal is LGE Community’s second bank acquisition in the last five years. As CUToday.info reported here, in 2018 the credit union acquired Dallas, Ga.-based Georgia Heritage Bank.
The deal also marks the second purchase of a bank by a credit union this week, with Grand Blanc, Mich.-based Dort Financial CU earlier announcing it is acquiring West Palm Beach, Fla.-based Flagler Bank.
A New Record
According to the pioneer of credit union purchases of banks, Michael Bell, this marks the 14th CU/bank deal in 2022, one better than the 13 recorded in 2019, which was a record year.
“This marks a new record for credit union purchases of banks,” said Bell, the leader of the Financial Institutions Practice Group at Honigman LLP, which is representing LGE Community. “These deals just keep gaining momentum because credit unions see the value in entering a new market and gaining new expertise, and a growing number of banks see credit unions as attractive buyers.”
Bell has been involved with nearly 50 credit union purchases of banks.
Three More Branches
LGE Community Credit Union operates 14 branches, and the acquisition will give LGE three additional branches as its opens its membership to residents and businesses in Floyd and Gordon counties.
According to the credit union, the deal is expected to occur by the third quarter of 2023, but remains subject to approval by Greater Community Bank’s shareholders, receipt of regulatory approvals and other customary closing conditions.
Greater Community Bank was advised by the investment banking firm The Burke Group and represented by the law firm James Bates Brannan Groover LLP.
‘Deepen the Commitment’
“LGE Community Credit Union and Greater Community Bank coming together will deepen the commitment to consumers and businesses in these communities,” says Chris Leggett, president and CEO of LGE Community Credit Union. “We look forward to continuing to serve the customers of Greater Community Bank. As a member- owned, not-for-profit cooperative, we are dedicated to improving the financial well-being of our members by delivering value through better rates and lower fees, convenience, caring service and sound financial management.”
‘Built on Core Values’
Added David Lance, president and CEO of Greater Community Bank, “Greater Community Bank was built on the core values of integrity, respect, excellence, service, and team. Our board of directors believes LGE Community Credit Union reflects similar values and this alignment will be a positive move for our customers, employees and the communities we serve.”