Deadline Extended Again for Industry’s Largest Credit Union-Bank Acquisition Deal
VyStar says it continues to stand behind its proposed purchase of Heritage Southeast Bank.
Will the industry’s largest credit union-bank acquisition deal get final approvals from regulators?
For nearly a year, the $11.6 billion VyStar Credit Union and the $1.6 billion Heritage Southeast Bank have been waiting for the green light from regulators to close the deal, and no one is saying publicly what, if anything, may be delaying a decision.
VyStar and Heritage Southeast Bank have agreed, for the second time, to extend the deadline to March 31 to secure the required regulatory approvals to finalize the purchase and assumption agreement.
On March 31, 2021, Vystar in Jacksonville, Fla., agreed to buy Heritage Southeast Bank of Jonesboro, Ga., for approximately $189 million.
Originally, the financial institutions set a deadline of Dec. 31, 2021, to secure regulatory approvals. But in October they agreed to extend that deadline to Feb. 28.
“While the February 28 date is no longer possible at this time, as we await a decision by the NCUA board, VyStar stands behind their proposed purchase of Heritage Southeast Bank,” a VyStar spokesperson said in a prepared statement. “The deal brings together two strong and well performing financial institutions in a free market transaction at a fair and equitable price. We continue to be excited about all of the benefits that this will bring to employees, members and communities.”
In a prepared statement released by Heritage Southeast Bank on Feb. 28, the financial institutions said they continue to pursue regulatory approvals from the FDIC, the NCUA, the Georgia Department of Banking and Finance and the Florida Office of Financial Regulation.
However, the prepared statement also noted there are no assurances the financial institutions will receive regulatory approvals during the first quarter, or at all, which would kill the deal.
When reached by CU Times, the NCUA and FDIC declined to comment. The two state regulators said the credit union-bank acquisition applications are pending.