DOTHAN, Ala. and CAMILLA, Ga. (9/6/13)--Five Star CU, Dothan, Ala., has signed an agreement to purchase substantially all of the assets and assume deposits and other liabilities of Flint River National Bank, Camilla, Ga.. The acquisition is subject to regulatory approvals and pending shareholder approval of FRNB.
Under the terms of the agreement, FSCU will purchase all loans, investments, real estate, accrued interest receivables, and other banking-related assets of FRNB, with an estimated value of roughly $21 million, after a discount to the loan portfolio agreed to by the parties) and will assume all deposits, and accrued interest payable of about $21 million. It will continue to operate its new credit union branch at FRNB's current location.
"We welcome FRNB's customers and employees to the FSCU family and look forward to integrating ourselves into these additional communities in southwest Georgia," said Five Star CU president/CEO Bob Steensma.
"Unsuspecting" former Flint River National Bank customers are likely to be pleasantly surprised to discover the benefits of being a credit unions members, said Credit Union National Association Chief Economist Bill Hampel.
Five Star CU's purchase of FRNB is the fifth credit union acquisition of a bank since 2011. Municipal Employees CU of Baltimore announced in April it has agreed to buy the $61 million asset Advance Bank, also of Baltimore (News Now April 5).The National Credit Union Administration approved New Berlin, Wis.-based Landmark CU's request to purchase and assume Hartford Savings Bank last month (News Now March 18).
GFA FCU, Gardner, Mass., acquired Monadnock Community Bank in December (News Now Dec. 12). United FCU, based in St. Joseph, Mich., purchased Griffith (Ind.) Savings Bank in December 2011 (News Now Dec. 15, 2011).