VyStar Credit Union in Jacksonville, Florida, has officially terminated its deal to acquire Heritage Southeast Bank in Jonesboro, Georgia.
The $12.4 billion-asset VyStar announced its proposed purchase of the $1.7 billion-asset HSBI in March of last year — the largest bank to be potentially sold to a credit union — but delayed the deal three times after unsuccessful efforts to obtain approvals from the Federal Deposit Insurance Corp., the National Credit Union Administration, the Georgia Department of Banking and Finance and the Florida Office of Financial Regulation.
“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,” Leonard A. Moreland, chief executive of HSBI, said in a press release Wednesday.
Both parties involved in the agreement will be responsible for respective costs and expenses incurred and no termination fees will be paid, according to the release.
“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,” Brian Wolfburg, president and CEO of VyStar, said in the release.
Separately, the credit union has experienced ongoing service issues as a result of adopting a new mobile and web banking platform last month, which initially resulted in members unable to conduct transactions of any kind via its mobile app.