- Daleville, Alabama-based All In Credit Union has agreed to buy five branches of 22nd State Bank in the state, the company announced Wednesday.
- All In will acquire Louisville, Alabama-based 22nd State Bank branches in Brewton, Clayton, Eufaula, Geneva and Louisville. The financial terms of the deal, expected to close by the third quarter, were not disclosed.
- All In will gain roughly $145 million in deposits from the transaction and $130 million in loans, the company said, according to figures from Oct. 31.
All In is not a newcomer in bank M&A. The credit union agreed to buy Dothan, Alabama-based SunSouth Bank in June. Like the 22nd State deal, the June acquisition also aimed to expand All In’s footprint across southern Alabama.
“We are excited to acquire these five branch locations from 22nd State Bank,” All In CEO Bobby Michael said in a statement Wednesday. “This move allows us to expand our presence in our 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.”
Though bank-credit union mergers and acquisitions have generally been on the rise in recent years, 2023 saw a decrease in such deals — to 11, from 16 in 2022.
The All In-22nd State deal won’t count toward that figure because 22nd State will still have two locations afterward.
The bank will, however, relocate its charter to Mobile, Alabama, and operate as an independent community bank, 22nd State CEO Steve Smith said in a statement.
“Going forward, this transaction will more closely align 22nd State Bank’s geographic footprint with our strategy to be a community bank serving Alabama’s Gulf Coast region,” Smith said in a statement.
Michael Bell, an attorney at Honigman, called the deal a natural and adjacent expansion for All In, given its geography.
“Branch deals are rare, but they happen,” Bell told Banking Dive via email. “This is a very compelling and easy ‘add-on.’”
Bell said he expects credit union-bank activity levels to increase dramatically in 2024, with more announcements coming soon.
Christopher Olsen, managing partner at Olsen Palmer, echoed Bell’s thoughts.
“After a somewhat tepid year for community bank M&A in 2023, we are seeing momentum building for greater M&A activity in 2024 driven by a variety of factors, including a decline in interest rates and the corresponding relief in bond valuations, a recovery in bank stock valuations, and the pursuit (on the part of acquirers) or lack of (on the part of sellers) sufficient operating scale,” Olsen told Banking Dive in an email.