METAIRIE, La.—Jefferson Financial FCU here announced it is acquiring three branches from Synovus Bank.
The $926-million credit union will pick up two of the bank’s branches in Mobile, Ala., and one in Daphne, Ala.
Under the agreement, Synovus Bank will transfer to Jefferson Financial $138 million in loans, $107 million in deposits, and other assets associated with the three offices in exchange for a deposit premium of $14.5 million, the organizations reported. Synovus Bank is a subsidiary of Synovus Financial Corp., based in Columbus, Ga.
The purchase of the branches is subject to regulatory approval and satisfaction of customary closing conditions and is expected to be completed in the first quarter of 2019, the organizations reported.
“Bank branch purchases for credit unions typically get off to a very good start, because these deals are often profitable from day one,” said Michael Bell, attorney and counselor at Royal-Oak, Mich.-based Howard & Howard, who represents Jefferson Financial and who has been part of 23 CU/bank deals, including three mergers of a bank into a credit union. “They are often profitable quickly because you don’t have the soft costs and others associated with a whole-bank buy, such as paying for early cancellation of a core system contract. These deals are conservative in nature and begin to pay off immediately.”