Atlanta, GA (May 31, 2024) |
Atlanta Postal Credit Union (APCU), Georgia’s oldest credit union and the largest postal credit union in the United States, along with its community-based subsidiary, Center Parc Credit Union, and Affinity Bancshares, Inc (“Affinity”) (NASDAQ: AFBI) announced today that APCU has entered into a definitive agreement pursuant to which the credit union will acquire Covington, Georgia-based Affinity Bank, National Association, a wholly-owned subsidiary of Affinity. The transaction is structured as a purchase and assumption agreement whereby APCU will acquire Affinity Bank by purchasing substantially all assets and assuming substantially all liabilities of Affinity Bank in an all-cash transaction.
The agreement was unanimously approved by the Boards of Directors of APCU/Center Parc and Affinity. The transaction is expected to close during the fourth quarter of 2024 or the first quarter of 2025, subject to receiving all regulatory approvals, approval by Affinity shareholders and other customary closing conditions. Following the closing of the transaction, Affinity and Affinity Bank will liquidate, dissolve and distribute their remaining assets to Affinity shareholders. Under the terms of the purchase and assumption agreement, APCU will pay Affinity Bank an aggregate amount estimated to provide Affinity with sufficient cash to have $22.50 per share in cash available for distribution to its shareholders, subject to potential increase for levels of tax payments.
The acquisition will allow APCU/Center Parc to expand their reach throughout Atlanta and surrounding communities, as well as increase their market base and expertise. Affinity Bank customers will become members of APCU/Center Parc, gaining access to a full range of membership benefits offered by the credit union such as digital banking, checking, savings, various consumer loans, residential mortgages and more.
“For nearly 100 years, Affinity Bank has successfully served both small businesses and individuals throughout Atlanta and the entire region,” Blake Graham, APCU/Center Parc President & CEO said. “Through this agreement, we look forward to welcoming Affinity Bank’s customers as new members and exceeding their expectations in every way as we work to help them financially flourish. We are also excited to enter into this agreement as a way to drive our member-centric growth strategy forward.”
Edward J. Cooney, President and Chief Executive Officer of Affinity commented, “During our proud history, Affinity Bank has been committed to serving our clients and local communities. Through a consistent level of superior quality service, our dedicated staff has grown a loyal commercial and retail customer base. We are very excited about joining the APCU/Center Parc team. APCU/Center Parc share our core values, and have demonstrated a similar commitment to their members, employees and the communities they serve.”
Once the acquisition is complete, APCU/Center Parc will continue to operate Affinity Bank’s locations in Newton County and Northwest Atlanta.
Hovde Group, LLC acted as financial advisor to APCU/Center Parc and Honigman, LLP served as its legal counsel. Performance Trust Capital Partners, LLC served as financial advisor and provided a fairness opinion to Affinity and Luse Gorman, PC served as legal counsel to Affinity in the transaction.