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Jax Daily Record Monday, Feb. 28, 202211:50 AM EST

VyStar still waiting for federal approval of Heritage purchase

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The credit union and commercial bank extend the deadline for completing the deal.
by: Mark Basch Contributing Writer

As they continue to wait for regulatory approval for the deal, VyStar Credit Union and Heritage Southeast Bancorporation Inc. extended the date for completion of VyStar’s purchase of Heritage.

The two companies said Feb. 28 they extended the deadline for another month until March 31 before either side can terminate the agreement if they don’t get the necessary approvals.

March 31 will mark one year since Jacksonville-based VyStar agreed to buy Jonesboro, Georgia-based Heritage.

The acquisition would be the second purchase of a commercial bank by VyStar, following its August 2019 acquisition of Perry-based Citizens State Bank.

However, the banking industry has been pushing back against credit unions buying commercial banks, saying credit unions have unfair advantages over banks in making those deals.

Opposition by banks may be delaying regulatory approval of the VyStar-Heritage deal.

The companies said Feb. 28 they are still waiting for the necessary 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.

The parties hoped to complete the deal by the end of Dec. 31. But while they waited for the approvals, they agreed in October to extend the deadline to Feb. 28.

 

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