VyStar-Heritage deal delayed – again

Patience is becoming a virtue with VyStar Credit Union’s still-pending purchase of Heritage Southeast Bank in Jonesboro, Ga. 

The $11.7 billion-asset Vystar said late Thursday that the $196 million acquisition is being delayed for a third time as it awaits regulatory approval. This time, the closing has been pushed back to June 30.

The credit union agreed to buy the $1.7 billion-asset bank in March 2021; if it closes it would be the biggest deal involving a credit union buying a bank. 

The deal was initially pushed back in October, and again in February. 

“There can be no assurance that the parties will receive regulatory approval during the second quarter, or at all,” VyStar and Heritage said. “While the parties continue to work toward closing the proposed business combination, the parties recognize that the timing of regulatory approval and customer notifications may result in the closing of the transaction occurring after June 30.” 

The transaction still needs approval from the National Credit Union Administration, the Federal Deposit Insurance Corp. and state banking regulators.