DOTHAN, Ga. — Five Star Credit Union, a $318-million institution here, and Farmers State Bank, a $47-million entity headquartered in Lumpkin, Ga., jointly announced that they signed an agreement under which FSCU will purchase substantially all of the assets and assume deposits and other liabilities of FSB.
FSCU specifically said it intends to purchase all loans, investments, real estate, accrued interest receivables, and other banking-related assets; and all deposits and accrued interest payable of FSB. FSCU also plans to continue to operate all three of FSB's current branch locations after the deal is complete.
The proposed transaction remains subject to approval by FSB shareholders and to regulatory approvals.
This will be FSCU's second bank acquisition. In June 2014, Five Star purchased Flint River National Bank of Georgia.
"We are excited to partner with Five Star in this transaction," said Gary F. Blackburn, president and CEO of FSB, in a statement. "Our board considered a number of options and concluded that Five Star is best positioned to serve the needs of our market and that they will be able to offer new and improved services to our customers. We feel this will be a great fit not only for our customers but for our employees who have contributed so much to our organization. Five Star is a company that is expanding and we are pleased to be a part of their growth strategy."
FSCU currently operates 13 branch offices in Alabama and Georgia.
Bob Steensma, FSCU's president and CEO, said, "We are pleased to have the opportunity to expand our market presence in southwest Georgia. We will welcome FSB's customers and employees to the FSCU family and look forward to integrating ourselves into these additional communities in southwest Georgia."
FSCU was advised on the deal by Peter Williams of Feldman Financial Advisors, Washington, D.C. and is represented by Michael M. Bell, Esq. of Howard & Howard, Royal Oak, Mich.
