Atlanta Postal Credit Union to acquire Affinity Bank in landmark all-cash deal


Atlanta Postal Credit Union (APCU), Georgia’s oldest and the largest postal credit union in the United States, alongside its subsidiary Center Parc Credit Union, has entered into a definitive agreement to acquire Affinity Bank, a subsidiary of Affinity Bancshares, Inc. (NASDAQ: AFBI). This strategic acquisition is set to reshape the financial landscape in Atlanta and beyond.

Transaction Details and Financial Implications

Under the terms of the purchase and assumption agreement, APCU will acquire all substantial assets and assume liabilities of Affinity Bank in an all-cash transaction, with a deal structured to provide Affinity Bancshares with approximately $22.50 per share in cash for distribution to its shareholders. This transaction, unanimously approved by the Boards of Directors of both APCU/Center Parc and Affinity, is anticipated to close between the fourth quarter of 2024 and the first quarter of 2025, pending regulatory approvals, Affinity shareholder approval, and other customary closing conditions. Following the closure, Affinity and Affinity Bank will proceed to liquidate, dissolve, and distribute remaining assets to shareholders.

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Strategic Expansion and Member Benefits

This acquisition marks a significant step for APCU/Center Parc as it aims to expand its reach throughout Atlanta and surrounding communities, enhancing its market base and service expertise. Affinity Bank’s customers will transition to becoming members of APCU/Center Parc, gaining access to a comprehensive suite of membership benefits including digital banking, various consumer loans, and residential mortgages.

“For nearly 100 years, Affinity Bank has successfully served both small businesses and individuals throughout Atlanta and the entire region,” stated Blake Graham, President & CEO of APCU/Center Parc. “Through this agreement, we look forward to welcoming Affinity Bank’s customers as new members and exceeding their expectations as we help them financially flourish.”

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Edward J. Cooney, President and CEO of Affinity, echoed this sentiment, noting the shared values and commitment to community service between the two institutions. “We are very excited about joining the APCU/Center Parc team. APCU/Center Parc share our core values, and have demonstrated a similar commitment to their members, employees, and the communities they serve,” said Cooney.

Advisory Roles and Corporate Insights

The Hovde Group, LLC served as the financial advisor, and Honigman, LLP acted as legal counsel to APCU/Center Parc. Affinity was advised by Performance Trust Capital Partners, LLC, which also provided a fairness opinion, and Luse Gorman, PC, which acted as legal counsel.

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Affinity Bancshares, based in Covington, Georgia, boasts approximately $870 million in assets. Its banking subsidiary, Affinity Bank, was founded in 1928 and has grown into a community pillar, especially known for its industry-specific solutions supporting niche markets such as commercial real estate and medical practices.

The acquisition of Affinity Bank by APCU/Center Parc is a bold move in the credit union sector, indicating a trend towards consolidation and expansion within the industry. This merger not only enhances APCU/Center Parc’s service offerings but also solidifies its position as a leader in the financial services sector in Atlanta, providing robust growth opportunities and greater financial stability to its members.

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