VyStar Still Awaits Federal Approval for Heritage Purchase | Jax Daily Record | Jacksonville Daily Record
As they continue to await regulatory approval of the deal, VyStar Credit Union and Heritage Southeast Bancorporation Inc. have extended the completion date for VyStar’s purchase of Heritage.
The two companies said on Feb. 28 that they had extended the deadline for an additional month to March 31 before either party could terminate the agreement if they failed to obtain the necessary approvals.
March 31 will mark one year since Jacksonville-based VyStar agreed to buy Jonesboro, Georgia-based Heritage.
The acquisition would be VyStar’s second commercial bank purchase, following its August 2019 acquisition of Perry-based Citizens State Bank.
However, the banking industry opposes credit unions buying commercial banks, claiming that credit unions have unfair advantages over banks in entering into these deals.
Bank opposition could delay regulatory approval of the VyStar-Heritage deal.
The companies said Feb. 28 that they are still awaiting 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 conclude the agreement by the end of December 31. But pending approvals, they agreed in October to extend the deadline until February 28.
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