Heritage Southeast Bancorporation, Inc. (HSBI) and VyStar Credit Union on Wednesday announced a mutual agreement to end a buy-and-take agreement.
According to a press release, the deal with VyStar was announced on March 31, 2021, and the companies agreed to extend the closing deadline to June 30 this year “subject to the ability of either other of the parties to terminate the agreement in the event of certain regulations”. the obstacles had not been cleared as of April 30, 2022.”
The board of directors of both companies, the press release said, approved the termination “after careful consideration of the proposed transaction and the lack of a clear path to obtaining the necessary regulatory approvals for closing.”
“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 its services in Georgia,” said VyStar Chairman and CEO Brian Wolfburg said in a prepared statement, “We would like to express our sincere gratitude to the VyStar and HSBI teams who worked diligently through an extensive process.”
“After extensive deliberation and discussion, the Board of Directors of both institutions have concluded that the best course of action would be to halt the proposed transaction between our companies, as all required regulatory approvals would not be obtained in a timely manner,” Leonard A. Moreland, chief executive of HSBI, said in a prepared statement. “The termination of the purchase agreement allows HSBI to benefit from a better post-COVID 19 economic climate, a stronger capital position and to focus on the steady growth and value creation we have achieved in over the years. Additional strategic initiatives that have been delayed and designed to improve efficiency can now be pursued with strategic partnerships that will increase shareholder value.
The announcement comes as VyStar continues to address issues with its online and mobile banking platform. What started as a planned 48-hour outage to perform upgrades continued for over 30 days.
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On Wednesday, VyStar emailed members regarding its online and mobile banking system, saying its teams were “approaching the final stages of testing for the relaunch of the mobile app.” The credit union reminded its customers that most transactions that can be done in the mobile app can be done by logging into vystarcu.org.
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