Five Star Credit Union and Flint River National Bank announce purchase and assumption agreement
09/04/2013 12:22 pm
Five Star Credit Union (FSCU) headquartered in Dothan, Ala. and Flint River National Bank (FRNB), headquartered in Camilla, Ga., today jointly announced the signing of a definitive agreement under which FSCU will purchase substantially all of the assets and assume deposits and other liabilities of FRNB. This acquisition is subject to regulatory approvals and pending shareholder approval of FRNB.
Under the terms of the Agreement, FSCU will purchase all loans, investments, real estate, accrued interest receivables, and other banking-related assets of FRNB (with an estimated value of approximately $21 million, after a discount to the loan portfolio agreed to by the parties) and will assume all deposits, and accrued interest payable of approximately $21 million. It will continue to operate its new credit union branch at FRNB’s current location.
A. Scott Gatlin, president/CEO of FRNB said, “Mitchell & Baker counties will be well-served by FSCU as they will give area residents a local choice for financial services that they currently do not have, such as free checking with interest. Our customers will become FSCU’s members and will enjoy access to the credit union’s wider variety of products and services once this transaction is completed.”
FSCU’s President/CEO, Bob Steensma said, “We are extremely pleased to have the opportunity to expand our market presence in southwest Georgia. We welcome FRNB’s customers and employees to the FSCU family and look forward to integrating ourselves into these additional communities in southwest Georgia.”