The Bank Slate


VyStar-Heritage Southeast terminate planned merger

VyStar Credit Union in Jacksonville, Fla., and Heritage Southeast Bancorp. have terminated VyStar’s planned acquisition of Heritage Southeast Bank in Jonesboro, Ga., after failing to secure regulatory approval. 

The $12 billion-asset VyStar and the $1.7 billion-asset Heritage Southeast were nearing a June 30 closing deadline. The parties had repeatedly extended the deadline. 

“After much contemplation and discussion, the [boards] of both institutions concluded the best path forward would be to discontinue the proposed transaction … as all required regulatory approvals would not be obtained in a timely manner,” Leonard Moreland, Heritage Southeast’s CEO, said in a Wednesday press release. 

The termination positions Heritage Southeast “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,” Moreland added. “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.” 

“VyStar will continue to expand our services in Georgia,” Brian Wolfburg, the credit union’s president and CEO, said. “We would like to extend our sincere appreciation to both the VyStar and [Heritage Southeast] teams that worked diligently throughout an extensive process.”

Each company will bear its own costs and expenses in connection with the terminated transaction. Neither party will pay a termination fee. 

The acquisition, announced in March 2021, would have been the biggest sale of a bank to a credit union.

VyStar had been juggling the proposed merger and service issues stepping from last month’s adoption of a new web and mobile banking platform. The conversion led to members being unable to conduct transactions on its mobile app.

Leave a Reply

Your email address will not be published. Required fields are marked *