Source: ShutterstockThe $620 million First Commerce Credit Union in Tallahassee, Fla. revealed plans Monday to purchase and assume certain assets and liabilities of the $248 million Citizens Bank in Nashville, Ga.
Financial terms of the transaction, expected to close in the second quarter of 2020, were not disclosed.
Founded in 1943, The Citizens Bank managed deposits of $212 million, $34.7 million in capital and posted a net income of more than $1 million with an ROA of 0.88% at the end of the second quarter, according to the FDIC.
Although the FDIC lists no loan specialization for the bank, it has a $132 million real estate loan portfolio, which includes residential construction, land development and other construction, $18.9 million in commercial and industrial loans, $2.1 million in farm loans and $10.8 million in auto and personal loans.
If approved by regulators, the deal will enable First Commerce CU to expand its market presence from three branches to seven branches in South Georgia by adding four of the bank’s branches in Nashville, Ray City, Adel and Valdosta. Combined with its nine branches in the Sunshine State, First Commerce will operate16 locations in South Georgia and North Florida and manage more than $868 million in assets.
The credit union said it will retain the bank’s 75 employees who serve a customer base of approximately 15,000, which will increase the credit union’s membership ranks from 54,000 to nearly 70,000.
Bill Perry, president of The Citizens Bank, will work with First Commerce as a strategic advisor during the transition process. Steve Perry, CEO of The Citizens Bank, will join First Commerce as its market president who will oversee the credit union’s branch network in Georgia.
“First Commerce’s leadership is committed to providing financial solutions that meet the diverse needs of our members,” Cecilia Homison, president/CEO of First Commerce. “We have found a true partner in The Citizens Bank who believes in our vision to empower people to enhance their financial well-being. Together we will deliver exceptional member experiences while offering a wide variety of products and services that help to build stronger communities.”
This is the 13th credit union bank acquisition deal announced since January.