ATLANTA–The $2.3-billion Georgia’s Own Credit Union announced that it has reached an agreement to buy $90-million State Bank of Georgia, based in Fayetteville, Ga.
If the deal goes through, it will mark the first time a Georgia state chartered credit union acquires a Georgia State chartered bank.
The agreement has been approved by the board of directors of each institution. The acquisition is structured as an asset purchase and is expected to be completed in the second quarter of 2018, subject to approvals from state and national regulators and bank shareholders, the CU stated.
The 23-branch Georgia’s Own will pick up State Bank of Georgia’s one office. The bank has been marginally profitable over the last two years, showing $638,000 in net income through June 30, 2017, according to the FDIC website.
“We are thrilled that State Bank of Georgia has chosen to partner with Georgia’s Own, as we feel their extremely high standards of service and commitment to member prosperity so perfectly complement those of our own,” said Dave Preter, president and CEO of Georgia’s Own. “It is evident in the relationships that they’ve established with their customers, their employees, and the Fayetteville community that they will be an invaluable piece of our growth as we continue to expand our operations across the state.”
“We are excited to bring our valued customers the opportunity to bank with Georgia’s Own,” said Lacy Curry, acting chairman of the board at State Bank of Georgia. “In addition to
making available more extensive loan options, lower loan rates, higher deposit yields and a broader service platform, their culture, philosophy and commitment to excellence in customer service are aligned with those of State Bank of Georgia. We believe that the combination will provide significant synergies, scalability and other benefits to our community and customers.”
Michael Bell, attorney and counselor with Royal-Oak, Mich.-based Howard & Howard, who is representing GOCU, said CU purchases of banks continue to occur and their “relevancy is increasing. I expect this to be the first of a few deals in Georgia. When looking at the recently announced transactions you can see a trend developing, banks that are profitable are being acquired.”
Bell has been part of 17 CU/bank deals, including two mergers of a bank into a credit union.