Heritage Southeast Bancorporation, Inc. and VyStar Credit Union Agree to Terminate Purchase Agreement
Heritage Southeast Bancorporation, Inc. (“HSBI”) and VyStar Credit Union (“VyStar”) jointly announced today a mutual agreement to terminate their purchase and assumption agreement. The agreement with VyStar was originally announced on March 31, 2021, and the companies had previously agreed to extend the closing deadline until June 30, 2022, subject to the ability of either party to terminate the agreement in the event certain regulatory hurdles were not cleared by April 30, 2022.
The termination was approved by both companies’ boards 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.
“After much contemplation and discussion, the Board of Directors of both institutions concluded the best path forward would be to discontinue the proposed transaction between our companies as all required regulatory approvals would not be obtained in a timely manner,” said Leonard A. Moreland, Chief Executive Officer of HSBI. “The termination of the purchase agreement positions HSBI 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.”
“Following a thorough evaluation of the transaction between VyStar and HSBI, we have mutually agreed that moving forward separately is the prudent decision. VyStar will continue to expand our services in Georgia,” said VyStar President/CEO Brian Wolfburg. “We would like to extend our sincere appreciation to both the VyStar and HSBI teams that worked diligently throughout an extensive process.”
The parties have agreed that each company will bear its own costs and expenses in connection with the terminated transaction, and that neither party will pay any termination fee as a result of the mutual decision to terminate the purchase agreement.