Jacksonville-based VyStar Credit Union and Atlanta-based Heritage Southeast Bancorporation, Inc., announced June 15 that they mutually agreed to terminate their purchase-and-assumption agreement due to delays in regulatory approvals.
The more than $12 billion VyStar announced in March 2021 that it planned to acquire the $1.7 billion Heritage Southeast, but the deal has since been delayed several times. This spring, the companies agreed to extend the closing deadline until June 30 to continue pursuing regulatory approvals from the FDIC, National Credit Union Administration, Georgia Department of Banking and Finance and the Florida Office of Financial Regulation, subject to either being able to end the agreement if certain regulatory hurdles were not cleared by the end of April.
“The termination was approved by both companies’ board 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,” a Heritage Southeast press release stated.
Heritage Southeast CEO Leonard Moreland said the ending of the purchase agreement allows the bank “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.”
Heritage Southeast hired Piper Sandler and Co., to advise its board as the company reviews its strategic alternatives.