DOTHAN, Ala. (11/5/15)--Five Star CU, Dothan, Ala., officially completed the purchase of Lumpkin, Ga.-based Farmers State Bank this week.
As part of the transaction, Five Star has purchased all the assets and assumed all deposits and other liabilities of the former bank. The deal also marks the second bank acquisition made by Five Star in the last two years.
“We welcome the employees of our three new branches in Lumpkin, Richland and Georgetown,” the credit union said. All three cities are located in Georgia. “We also welcome the approximately 2,900 new credit union members the former bank customers became on Nov. 1. We look forward to serving you.”
Five Star also purchased Flint River National Bank in Camilla, Ga., last year.
Robert Steensma, Five Star president/CEO, said that both banks had been struggling, but that the credit union’s existing infrastructure and scale would salvage both financial institutions.
“We might not have the scale of some large banks or credit unions, but we can make these purchases work for us relatively quickly,” Steensma told News Now in February.
And if the success Five Star had with the first bank purchase is any indication, the Farmers State Bank acquisition also appears promising.
“We’ve had great success with member growth and deposit growth (after purchasing Flint River),” Steensma told News Now. “That tells us the community is welcoming us and trusts us. We would expect the same sort of scenario this time.”