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.
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