All In Credit Union to acquire Alabama community bank

All In Credit Union in Daleville, Alabama, plans to acquire $115 million-asset SunSouth Bank, the banking subsidiary of SunSouth Bancshares.

The all-cash deal will be structured as a purchase and assumption transaction. No other financial terms were disclosed in the press release on Thursday.

This is the first bank acquisition for the $2.8 billion-asset All In Credit Union.

"We are delighted at the combination of these two institutions. Southeastern Alabama is our home base and we are excited to expand our presence in this part of our footprint," said Bobby Michael, president and CEO of All In, in the press release.

The deal is the third announced in 2023 in which a credit union is buying a bank. Most recently,  Land of Lincoln Credit Union in Decatur, Illinois, agreed to acquire Nokomis Savings Bank.

There were 16 credit union deals for banks announced in 2022.

Scott Latham, president and CEO of the Alabama Bankers Association, said local communities and all Alabamians lose out whenever a community bank sells to a credit union. 

In addition to their exemptions from most state and federal taxes, many credit unions are less likely than banks to serve the needs of low-income individuals and families and to maintain offices in small, rural communities, he said. 

"Sadly, in a twist of irony, those who stand to lose the most from this latest sale are those who credit unions claim to help the most," Latham said in an interview.

The deal is at least the seventh involving an Alabama community bank being acquired by a credit union, he said. In December, Alabama One Credit Union in Tuscaloosa said it agreed to acquire First Bank. 

Dothan, Alabama-based SunSouth Bank was founded in 1954 and rebranded in 2002.

"Both institutions have a long history of serving Alabama's Wiregrass region, and we believe this partnership will provide our team members and customers with opportunities for continued growth and success," said Monty Weigel, president and CEO of SunSouth Bank, in the press release.

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All In was assisted by Mercer Capital as financial advisor and Honigman LLP as legal counsel. Olsen Palmer LLC served as SunSouth's financial advisor while Jones Walker LLP was its legal advisor on the transaction. 

All In earned $5.7 million in the first quarter of 2023, a 45% decrease compared with a year earlier, according to call report data from the National Credit Union Administration.