Atlanta Postal Credit Union (APCU), along with its subsidiary Center Parc Credit Union, and Affinity Bancshares, the holding company for Affinity Bank, have mutually agreed to terminate their previously announced purchase agreement.
The latest decision, effective immediately, halts the planned acquisition of Affinity Bank by APCU.
The boards of directors from all parties approved the termination following discussions APCU conducted with the Georgia Department of Banking and Finance and other applicable regulatory agencies.
Based on the outcome of these discussions, APCU withdrew its application for regulatory approval for the acquisition.
Signed in May this year, the acquisition agreement was structured as a purchase and assumption transaction.
Under the terms, APCU would have acquired substantially all assets and liabilities of Affinity Bank through an all-cash deal.
The transaction was designed to provide Affinity Bancshares shareholders with a cash distribution of $22.5 per share, subject to potential adjustments for tax payments.
Following the completion of the transaction, Affinity Bancshares and Affinity Bank would have been liquidated and dissolved, with any remaining assets distributed to shareholders.
The acquisition was intended to expand APCU’s presence in Atlanta and surrounding communities, broaden its market base, and enhance its expertise in specialised financial services.
Affinity Bank customers were expected to become members of APCU/Center Parc, gaining access to a wide range of credit union benefits, including digital banking, consumer loans, residential mortgages, and other financial services.
APCU and Center Parc Credit Union, with assets nearing $2.5bn and over 105,000 members nationwide, offer comprehensive financial services.
Based in Georgia, Affinity Bancshares operates Affinity Bank, which has approximately $870m in assets.
Affinity Bank specialises in providing services in commercial real estate, construction, dental and medical practices, and indirect auto lending.
