VyStar Credit Union in Jacksonville, Florida, has officially terminated its deal to acquire Heritage Southeast Bank in Jonesboro, Georgia.
The $12.4 billion-asset VyStar announced its proposed
“After much contemplation and discussion, the board of directors of both institutions concluded the best path forward would be to discontinue the proposed transaction between our companies as all required regulatory approvals would not be obtained in a timely manner. … The termination of the purchase agreement positions HSBI to benefit from an improved post-COVID 19 economic climate, stronger capital position and focus on the consistent growth and value creation we have delivered through the years,” Leonard A. Moreland, chief executive of HSBI, said in a press release Wednesday.
Both parties involved in the agreement will be responsible for respective costs and expenses incurred and no termination fees will be paid, according to the release.
“Following a thorough evaluation of the transaction between VyStar and HSBI, we have mutually agreed that moving forward separately is the prudent decision … VyStar will continue to expand our services in Georgia,” Brian Wolfburg, the credit union's president and CEO, said in the release.
Separately, the credit union has experienced ongoing service issues as a result of adopting a new mobile and web banking platform