Daleville, Alabama-based All In Credit Union has agreed to acquire $115 million-asset SunSouth Bank, the company announced Thursday.
The all-cash transaction is expected to close by the first quarter of 2024. Financial terms were not disclosed.
The move will bolster All In with $3 billion in assets and 33 locations across southeast Alabama and the Florida Panhandle, the company said.
“We are delighted at the combination of these two institutions,” All In CEO Bobby Michael said in a statement. “Southeastern Alabama is our home base, and we are excited to expand our presence in this part of our footprint. We look forward to welcoming SunSouth’s employees and customers to the All In family.”
The deal marks the third instance this year of a credit union proposing to buy a bank — well off pace compared with 2022. By the first week of June last year, nine credit union-bank tie-ups had been proposed.
“The economic uncertainty had caused a pause in the M&A space,” Michael Bell, an attorney at Honigman, told Banking Dive via email. “This transaction is the first piece of evidence that the pause is ending.”
Last year, a record-tying 16 credit union-bank deals were announced, though such deals irk trade groups like Independent Community Bankers of America. The group argues that credit unions’ tax exemption allows them to offer a higher buying price and helps them grow more freely than banks.
The deal is the first bank acquisition for the $2.8 billion-asset All In, according to American Banker.
“We are thrilled to join forces with All In,” Monty Weigel, CEO of Dothan, Alabama-based SunSouth, said in a statement. “Both institutions have a long history of serving Alabama’s Wiregrass region, and we believe this partnership will provide our team members and customers with opportunities for continued growth and success.”
All In is the second credit union in Alabama within six months moving to acquire a bank. In December, Tuscaloosa-based Alabama One Credit Union announced the purchase of First Bank of Wadley, expanding the credit union’s presence into the eastern part of the state.
Among this year’s credit union-bank deals, Decatur, Illinois-based land of Lincoln Credit Union announced its intention to acquire Nokomis Savings Bank in May.
Traverse City, Michigan-based 4Front Credit Union agreed in January to acquire the assets of Sault Sainte Marie-based Old Mission Bank and assume its liabilities.
