Heritage Southeast Bancorporation, Inc. (HSBI) and VyStar Credit Union on Wednesday announced a mutual agreement to terminate a purchase and assumption agreement.
According to a news release, the agreement with VyStar was announced on March 31, 2021, and the companies agreed to extend a closing deadline until June 30 of this year “subject to the ability of either party to terminate the agreement in the event certain regulatory hurdles were not cleared by April 30, 2022.”
Both companies’ board of directors, the news release states, approved the termination “after careful consideration of the proposed transaction and the lack of a clear path forward to obtaining the regulatory approvals needed 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 our services in Georgia,” VyStar President/CEO Brian Wolfburg said in a prepared statement. “We would like to extend our sincere appreciation to both the VyStar and HSBI teams that worked diligently throughout an extensive process.”
“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, said in a prepared statement. “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.”
The announcement comes as VyStar continues to work through issues with its online and mobile banking platform. What began as a planned 48-hour outage to make upgrades has continued for more than 30 days.
On Wednesday, VyStar sent an email to members about its online and mobile banking system, saying that its teams are “nearing the final stages of testing for re-launch of the mobile app.” The credit union reminded its customers that most of the transactions that are completable in the mobile app can be done by logging on to vystarcu.org.