Atlanta’s APCU/Center Parc Credit Union Set to Acquire Affinity Bank
In an exciting development from the Atlanta financial industry, Atlanta Postal Credit Union (APCU), the nation’s largest postal credit union, and its subsidiary, Center Parc Credit Union, together with Affinity Bancshares, Inc. (“Affinity”), have announced a definitive acquisition agreement. APCU is set to significantly boost its reach and standing with the acquisition of Affinity Bank, a Covington-based financial institution wholly owned by Affinity.
Transaction Announcement and Board Approval
The acquisition agreement unveiled on Monday, June 3rd, 2024 is structured as a purchase and assumption package whereby APCU will buy substantially all assets and undertake almost all liabilities of Affinity Bank. This monumental transaction is set to be an all-cash deal, and was unanimously approved by the Directors of both APCU/Center Parc and Affinity.
Timeline and Order of Events
The transaction is expected to seal either in the final quarter of 2024 or the initial quarter of 2025, dependent on regulatory approvals, approval by Affinity shareholders, and other typical closing standards. Post this, Affinity and Affinity Bank have planned to liquidate, dissolve and distribute their remaining assets to Affinity investors.
The Monetary Benefits
As part of the agreement, APCU will pay an aggregate to Affinity Bank to furnish Affinity with enough cash to have an estimated $22.50 per share available for allocation to its shareholders, subject to a potential surge for tax payment levels.
Benefits for Affinity Bank Customers and APCU’s Growth Strategy
The acquisition is not simply a lucrative business agreement, but also a strategically sound move expected to increase the market base and expertise of APCU/Center Parc. For customers of Affinity Bank, the transition promises a plethora of benefits, transforming them into members of APCU/Center Parc and thus availing them access to a comprehensive range of membership benefits, such as digital banking, checking, savings, multiple consumer loans, residential mortgages, and more.
Blake Graham, President & CEO of APCU/Center Parc, views the agreement as a conduit to delivering exceptional services to the newly-welcomed members and striving to help them financially prosper. He added, “We look forward to welcoming Affinity Bank’s customers as new members and exceeding their expectations…We are also excited to enter into this agreement as a way to drive our member-centric growth strategy forward.”
Keeping the Legacy Intact
Edward J. Cooney, President and CEO of Affinity, embraced the change, underscoring the continual commitment to serving its customers and local communities. Once the acquisition draws to a close, APCU/Center Parc will continue to run Affinity Bank’s locations in Newton County and Northwest Atlanta.
Advisors and Legal Counsel
APCU/Center Parc’s advisory partner for the transaction is the Hovde Group, LLC, with Honigman, LLP serving as its legal counsel. Affinity relied upon Performance Trust Capital Partners, LLC for financial advice and was represented by Luse Gorman, PC as their legal counsel in the transaction.
