DOTHAN, Ala.–Five Star Credit Union has announced its second acquisition of a bank this week, again reaching into Georgia to purchase Wilcox County State Bank in Abbeville. That brings to four the number of bank acquisitions by credit unions this week.
As CUToday.info reported here earlier, Five Star announced it was acquiring OneSouth Bank, the $215-million banking subsidiary of OneSouth Financial of Blakely, Ga. In addition, MSUFCU in Lansing, Mich. said it has entered into a definitive agreement to acquire McHenry, Ill.-based McHenry Savings Bank from its parent company McHenry Bancorp, Inc., while the $400-million Innovations Financial Credit Union in Panama City, Fla. has agreed to buy local First National Bank Northwest Florida.
Financial Terms Not Disclosed
In the case of Five Star CU’s acquisition of the $178-million Wilcox County State Bank, the deal will be structured as a purchase and assumption transaction, and the consideration will be all-cash.
Other financial terms were not disclosed.
Upon consummation, Five Star Credit Union said it will have total assets of approximately $950 million and will expand its footprint to 23 full-service banking locations across lower Alabama and south and middle Georgia with the addition of Wilcox County State Bank’s four offices in Abbeville, Rochelle, Milan and Ocilla, Ga., respectively.
The credit union reported $773-million in assets as of its mid-year 5300 call report.
‘Brighten the Future’
“Five Star Credit Union is member-focused and our purpose is to brighten the financial future of the communities we serve. Wilcox County State Bank has similar values for its customers,” Bob Steensma, President and CEO of Five Star Credit Union, said in a statement. “This is a great opportunity to put our combined experiences together to show how a community-focused financial institution can give a great banking experience. We’re excited to welcome Wilcox County State Bank’s customers and staff to the Five Star family.”
The transaction remains subject to customary closing conditions, including the approval of Wilcox County State Bank’s shareholders and the receipt of all necessary regulatory approvals, the organizations said.
It is expected to be completed by the second quarter of 2024.
Financial Advisors
D. A. Davidson served as financial advisor to Five Star Credit Union while Honigman, LLP served aslegal advisor. Martin Snow, LLP served as legal advisor to Wilcox County State Bank.
Five Star Credit Union has been among the most aggressive in the country in acquiring banks, especially in Georgia. Among the banks it has bought are Farmers State Bank and Flint River National Bank.
The credit union previously talked with CUToday.info about its strategy here.
Torrid Pace
The Pioneer of CU purchases of banks believes the current buying pace is not an aberration.
"As you can see, the pace has really accelerated," said Michael Bell, partner and co-chair of the Financial Institutions Practice Group. "I do expect this to continue, certainly not three per week, but more deals are coming. There are forces at the smaller levels of banking that are driving sales and strategies in credit union land, increasing buyers."
Bell has been involved in nearly 50 whole-bank agreements, plus additional bank branch purchase
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