VyStar Credit Union in Jacksonville, Fla., has agreed to buy Heritage Southeast Bank in Jonesboro, Ga.
With $1.6 billion of assets and 22 branches, Heritage Southeast would become the biggest bank to be sold to a credit union. The deal is expected to close by the end of this year.
The $10 billion-asset VyStar will pay $195.7 million in cash for Heritage Southeast, according to details released by Hovde Group, which advised the bank. The price valued Heritage Southeast at 184% of its tangible book value.
“VyStar has made an ongoing strategic commitment to search for partnerships that help us bring the benefits of credit union membership to more people, while reinforcing our position as a strong and reliable financial institution with better rates and lower fees for all our members,” Brian Wolfburg, VyStar’s president and CEO, said in a Wednesday press release.
Heritage Southeast “has exceeded our expectations as the optimal partner to help us expand our footprint and ensure financial services are accessible to more Georgia residents,” Wolfburg added.
VyStar
“We stand committed to our customers and employees,” Leonard Moreland, Heritage Southeast’s CEO, said in the release. “We look forward to working with VyStar to continue our tradition of fostering relationships to best serve our customers and having a positive impact in our local communities.”
VyStar was advised by McGuireWoods and Raymond James. Heritage Southeast was advised by Bryan Cave Leighton Paisner and Hovde.
