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ATLANTA, June 15, 2022 (GLOBE NEWSWIRE) -- Heritage Southeast Bancorporation, Inc. (“HSBI”) and VyStar Credit Union (“VyStar”) jointly announced today a mutual agreement to terminate their purchase and assumption agreement. The agreement with VyStar was originally announced on March 31, 2021, and the companies had previously agreed to extend the closing deadline until June 30, 2022, subject to the ability of either party to terminate the agreement in the event certain regulatory hurdles were not cleared by April 30, 2022.
The termination was approved by both companies’ boards of directors after careful consideration of the proposed transaction and the lack of a clear path forward to obtaining the regulatory approvals needed for closing.
“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,” said Leonard A. Moreland, Chief Executive Officer of HSBI. “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. 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.”
“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,” said VyStar President/CEO Brian Wolfburg. “We would like to extend our sincere appreciation to both the VyStar and HSBI teams that worked diligently throughout an extensive process.”
The parties have agreed that each company will bear its own costs and expenses in connection with the terminated transaction, and that neither party will pay any termination fee as a result of the mutual decision to terminate the purchase agreement.
About Heritage Southeast Bancorporation, Inc. and Heritage Southeast Bank:
Heritage Southeast Bancorporation, Inc. serves as the holding company for Heritage Southeast Bank, which is headquartered in Jonesboro, GA and operates under the names “Heritage Bank,” “The Heritage Bank,” and “Providence Bank” in its various markets. With approximately $1.7 billion in assets, the bank provides a well-rounded offering of commercial and consumer products through its 23 locations. For additional information, visit the HSBI website (myhsbi.com).
About VyStar Credit Union
VyStar Credit Union is the second-largest credit union headquartered in Florida and now serves more than 825,000 members with assets of over $12 billion. VyStar is the largest mortgage lender in Northeast Florida and a major employer in the region with over 2,000 employees. VyStar membership is open to everyone who lives or works in the 49 contiguous counties of Central to North Florida, 26 Georgia counties, and past and present military members and their families all over the world.
Statements included in this press release, which are not historical in nature, are intended to be, and hereby are identified as, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “will,” “may,” “anticipate,” “create,” “plan,” “expect,” “should,” and “could” and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are subject to risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence, which could cause actual results to differ materially from anticipated results.
Heritage Southeast Bancorporation, Inc. and its subsidiary disclaim any obligation to update or revise any forward-looking statements contained in this press release, which speak only as of the date hereof, whether as a result of new information, future events or otherwise, except as required by law.
Leonard A. Moreland
Philip F. Resch
Chief Executive Officer
Chief Financial Officer
Heritage Southeast Bancorporation, Inc.
101 North Main Street
P.O. Box 935
Jonesboro, GA 30236
VP, Communications and Public Relations
VyStar Credit Union
76 South Laura Street
Jacksonville, FL 32202