Heritage Southeast Bancorp Inc. (fka HSBI)

[Enterprising Investor]

Heritage Southeast Bancorporation, Inc. Enters into Agreement to be Acquired by VyStar Credit Union (3/31/21)

ATLANTA, March 31, 2021 (GLOBE NEWSWIRE) -- Heritage Southeast Bancorporation, Inc. (“HSBI”) announced today that HSBI and Heritage Southeast Bank have signed a definitive purchase and assumption agreement whereby VyStar Credit Union (“VyStar”) will acquire the assets and assume the liabilities of Heritage Southeast Bank in an all-cash transaction. Following the completion of this transaction, HSBI and Heritage Southeast Bank will wind down their operations and their remaining assets, after all obligations are settled, will be distributed to HSBI stockholders.

Under the terms of the purchase and assumption agreement, VyStar will pay HSBI an aggregate amount estimated to provide HSBI with sufficient cash to have $27.00 per share in cash available for distribution to its shareholders after satisfaction of all of HSBI’s unconsolidated debt and any other obligations (the “per share consideration”). The per share consideration available to HSBI shareholders is subject to variations based on costs related to winding down Heritage Southeast Bank and HSBI and distributing the remaining assets to stockholders, including satisfaction of liabilities related to the liquidation accounts maintained by Heritage Southeast Bank, satisfaction of certain indebtedness, satisfaction of certain tax amounts, and termination of certain contracts, among others.

The transaction has been unanimously approved by the board of directors of each party and is expected to close late in 2021, subject to customary closing conditions, the approval of HSBI stockholders, and obtaining regulatory approvals. The distribution of cash to HSBI stockholders is expected to occur shortly following completion of the sale of assets to VyStar.

HSBI, based in Jonesboro, GA, was created in August 2019 and serves as the holding company for Heritage Southeast Bank, which operates under the names Heritage Bank, Providence Bank, and The Heritage Bank in its various markets. HSBI has $1.5 billion in assets and 22 branch locations including Jacksonville, Southeast Georgia and Savannah, as well as the South and North Metro Atlanta areas.

“Through the unique structure of this acquisition by VyStar, we believe we are maximizing value to our stockholders. We look forward to working with VyStar to continue our tradition of fostering relationships to best serve our customers and having a positive impact in our local communities,” said Leonard Moreland, CEO of HSBI.

When finalized, the acquisition will bring VyStar’s total assets to approximately $12.5 billion, full-service branches to over 85 and members to more than 850,000. Nationally, VyStar will move to the 13th-largest credit union in the country by asset size.

Hovde Group, LLC served as financial advisor and provided a fairness opinion and Bryan Cave Leighton Paisner LLP served as legal counsel to HSBI in the transaction. Raymond James & Associates served as financial advisor and McGuireWoods served as legal counsel to VyStar in the transaction.

About Heritage Southeast Bancorporation, Inc. and Heritage Southeast Bank:
Heritage Southeast Bancorporation, Inc. serves as the holding company for Heritage Southeast Bank, which is headquartered in Jonesboro, GA and operates under the names “Heritage Bank,” “The Heritage Bank,” and “Providence Bank” in its various markets. With approximately $1.5 billion in assets, the bank provides a well-rounded offering of commercial and consumer products through its 22 locations. For additional information, visit the HSBI website (myhsbi.com).

A proxy statement containing important information about the proposed transaction will be mailed to the shareholders of HSBI. The shareholders of HSBI are urged to read this proxy statement, which will include the agreement, and other related documents (including any amendments or supplements), carefully when it becomes available.