Florida Credit Union Signs Deal to Buy Bank
Vystar Credit Union expects to finalize its Citizens State Bank purchase by June.
Florida’s second largest credit union, the $8 billion VyStar Credit Union in Jacksonville, said Monday it signed an agreement to buy the $279 million Citizens State Bank in Perry.
Financial terms were not disclosed of the first credit union purchase of a bank in 2019.
Established in 1958, the state-chartered bank that serves about 20,000 customers, posted total deposits of $238 million, net income of $2.7 million and an ROA of 1.33%, according to the bank’s third quarter financials filed with the FDIC.
CSB maintains a commercial lending specialization, managing more than $9.3 million in commercial and industrial loans at the end of the third quarter, according to the FDIC.
The bank also managed more than $76 million in loans for residential construction, other construction, multi-family residential and nonresidential properties. Additionally, the bank recorded more than $114 million in other consumer loans, CSB’s third quarter financial filed with the FDIC shows.
If the acquisition is approved by regulators, Vystar said it will continue to operate CSB’s four branches including two in Gainesville, one in Perry and one in Steinhatchee. The bank’s employees are expected to retain their jobs with the credit union.
“The CSB acquisition and our recent field of membership expansions are significant milestones in our vision to bring credit union services to more people,” VyStar President/CEO Brian Wolfburg said in a prepared statement. “VyStar’s growth over the past 65 years has been organic, and that has served us well. Now, our recent expansions are taking VyStar into new markets, making it necessary to consider mergers/acquisitions to more efficiently serve these new markets.”
In November, VyStar received approval from state regulators to expand its field of membership by 27 counties—more than doubling the credit union’s original 22 counties—to include all 49 counties from Central to North Florida. This expansion included Taylor County where CSB’s Perry and Steinhatchee branches are located.
The credit union, which currently serves the Gainesville community with two branches, said it plans to open additional offices in Alachua and Ocala by midyear when the CSB is expected to finalize.
VyStar’s Senior Vice President Strategic Initiatives Ryan McIntyre has led credit union’s efforts in identifying potential strategic partners.