Dothan, Ala.-based Five Star CU agreed to acquire Abbeville, Ga.-based Wilcox County State Bank in the credit union's second bank buy this week.
The financial terms of the all-cash transaction, expected to close by the second quarter of 2024, were not disclosed. The announcement came just days after the credit union struck a deal to acquire Macon, Ga.-based OneSouth Bank.
With the addition of Wilcox County State Bank's $178.5 million in assets and OneSouth Bank's $212.2 million in assets, Five Star CU will have more than $1.1 billion in assets, according to S&P Global Market Intelligence data. The credit union stood at $773.2 million in assets at June 30.
Both banks, which each have four branches, will expand the Alabama-based credit union's presence in Georgia.
Wilcox County State Bank operates two branches in Wilcox County, Ga., ranked first with a 42.3% share of about $145.51 million in total market deposits, and one branch in Irwin County, Ga., ranked second with a 33.2% share of roughly $156.95 million in total market deposits, according to Market Intelligence data. Also, it operates one branch in Telfair County, Ga., ranked fourth with a 6.91% share of about $206.14 million in total market deposits.
Market Intelligence valuations for bank and thrift targets in the Southeast region between Aug. 31, 2022, and Aug. 31, 2023, averaged 151.27% of book and 162.83% of tangible book and had a median of 13.79x last-12-months earnings, on an aggregate basis.
The two bank deals this week are not Five Star CU's first. It acquired Flint River National Bank in 2014 and Farmers State Bank in 2015.
Five Star CU's latest announcement brings the total amount of credit union-banks deals announced this year to nine, following a wave of four announcements this week.
The boards of both institutions unanimously approved the deal, but it remains subject to approval from Wilcox County State Bank shareholders and regulators.
Five Star CU was financially advised by D.A. Davidson, while Honigman LLP was legal counsel. Wilcox County State Bank was legally advised by law firm Martin Snow LLP.
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