All In Credit Union to acquire five bank branches in Alabama

The first transaction announced between a credit union and a bank in 2024 isn't a full sale, but it's still a downsize on the part of the bank.

All In Credit Union in Daleville, Alabama, said it has agreed to acquire five branches from Louisville, Alabama-based 22nd State Bank. The branches are located in Brewton, Clayton, Eufaula, Geneva and Louisville, Alabama. 

The $3 billion-asset credit union did not disclose financial terms of the deal, which is expected to close no later than the third quarter of 2024.

All In said in a press release that it has agreed to assume certain deposit liabilities and to acquire certain loans, as well as cash, real property, personal property and other fixed assets associated with the branches.

As of Oct. 31, 2023, the deposit and loan balances associated with the transaction were approximately $145 million and $130 million, respectively.

Upon completion, the $250 million-asset 22nd State Bank will relocate its charter to Mobile and continue to operate its two locations in the city. The announcement did not say what would happen to the staff of those branches, and the companies did not reply to a request for comment by deadline. In most branch sales, the staff of the branches stay on board.

Steve Smith, president and CEO of 22nd State Bank, said the transaction will more closely align the bank's geographic footprint with its strategy to be a community bank serving Alabama's Gulf Coast region.

"22nd State Bank will continue as an independent community bank chartered and headquartered in Mobile and we look forward to serving our ongoing customers through our two locations in greater Mobile," Smith said in the press release. 

Bobby Michael, president and CEO of All In Credit Union, said the move allows the credit union to expand its presence in its home base of south Alabama. 

"We look forward to welcoming those 22nd State Bank employees and customers associated with the branches to the All In family," he said in the release.

In June, All In Credit Union announced plans to acquire $115 million-asset SunSouth Bank, the banking subsidiary of SunSouth Bancshares. The purchase of the Dothan, Alabama-based SunSouth was the first bank acquisition for All In Credit Union.

There were 11 credit union deals for whole banks last year, down from the 16 announced in 2022.

There were not many bank branch sales to credit unions in 2023, although MidWestOne Bank in Iowa announced plans to sell its Florida operations to DFCU Financial, a credit union based in Dearborn, Michigan.

Earlier in the year, Citizens State Bank in Woodville, Texas, announced that it would sell one of its five branches to First Central Credit Union in Waco, Texas.

"But I am seeing more activity in the branch-sale space," said attorney Mike Bell of Honigman in an interview. "I think the activity will increase materially as soon as liquidity pressures abate." 

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All In was advised in the transaction by Honigman LLP as legal counsel. Olsen Palmer LLC served as 22nd State's financial advisor while Jones Walker LLP served as its legal advisor.

All In Credit Union earned $20 million in the first three quarters of 2023, a 27% decrease compared with a year earlier, according to call report data from the National Credit Union Administration. 

Net income for 22nd State Bank was $1.8 million through the first three quarters of 2023 compared to $1.3 million the year before, according to S&P Global Market Intelligence data.