DOTHAN, Ala., and LUMPKIN, Ga. (2/20/15)--Five Star CU has signed an agreement to purchase substantially all of the assets and assume deposits and other liabilities of Farmers State Bank, Lumpkin, Ga., the credit union's second planned acquisition of a bank in two years.
The acquisition, which is subject to regulatory approvals and bank shareholder approval, will bring credit union services to three Georgia counties previously only served by Farmers State Bank.
Five Star CU is a National Credit Union Administration-designated low-income credit union and U.S. Treasury-certified community development financial institution dedicated to serving underserved markets, Five Star CU CEO Bob Steensma told News Now.
"This plays well with our mission to bring low-cost financial services to communities that would otherwise not have them," Steensma said.
Five Star CU intends to purchase all loans, investments, real estate, accrued interest receivables, and other banking-related assets and all deposits and accrued interest payable of Farmers State Bank. Five Star intends to continue to operate all three of Farmer State Bank's current branch locations.
In 2014, Five Star CU acquired of Flint River National Bank in Camilla, Ga.
"Both banks were struggling," Steensma said. "The benefit we have is that we bring our existing infrastructure with us, our processes and procedures, and, at least compared to them, some scale. We might not have the scale of some large banks or credit unions, but we can make these purchases work for us relatively quickly."
The Flint River National Bank acquisition appears to be blossoming. "We've had great success with member growth and deposit growth," 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."