VyStar Credit Union, Heritage Southeast Bancorporation scrap merger deal
US-based bank holding companies VyStar Credit Union and Heritage Southeast Bancorporation (HSBI) have mutually agreed to scrap their previously announced merger deal owing to regulatory hurdles.
VyStar Credit Union is a Florida-based credit union, while Heritage Southeast Bancorporation is the holding company for Heritage Southeast Bank, a Georgia-based state-chartered bank.
Under the deal that was announced in March 2021, VyStar Credit Union was to acquire Heritage Southeast Bank.Leonard A. Moreland
The deal between the two bank holding companies has been terminated following careful consideration and the lack of a clear path in securing the regulatory approvals required for closing.
VyStar Credit Union, Heritage Southeast Bancorporation scrap merger deal. Photo courtesy of Michael Rivera/Wikimedia Commons.
Leonard A. Moreland — CEO of Heritage Southeast Bancorporation said: “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. Additional strategic initiatives that have been delayed and designed to improve efficiencies can now be pursued along with strategic partnerships that will enhance shareholder value.”
Heritage Southeast Bancorporation and VyStar Credit Union have agreed to bear their own costs and expenses relating to the scrapped deal. Neither of the two bank holding companies will pay any termination fee to the other because of the mutual decision to scrap the purchase agreement.
Brian Wolfburg — VyStar Credit Union President/CEO said: “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.
“We would like to extend our sincere appreciation to both the VyStar and HSBI teams that worked diligently throughout an extensive process.”