Heritage Southeast Bancorporation, Inc., and VyStar Credit Union Extend Purchase Agreement

Rhea-AI Summary

Heritage Southeast Bancorporation (HSBI) announced the extension of the deadline for regulatory approvals regarding its acquisition by VyStar Credit Union until March 31, 2022. This agreement allows more time to meet regulatory requirements from several agencies, such as the FDIC and NCUA. The parties aim to ensure a smooth transition, but there is no guarantee that all approvals will be obtained within the expected timeframe. HSBI, operating with about $1.7 billion in assets and 23 locations, continues to prepare for the transaction's completion.

Positive

• Extension of deadline allows more time to address regulatory approvals.
• Potential benefits from the merger with VyStar may enhance service offerings.

Negative

• No assurance that regulatory approvals will be granted on time or at all.
• Possible delays in the transaction could impact operational planning.

ATLANTA, Feb. 28, 2022 (GLOBE NEWSWIRE) -- Heritage Southeast Bancorporation, Inc. (“HSBI”) announced today that HSBI, Heritage Southeast Bank and VyStar Credit Union (“VyStar”) have mutually agreed to extend the time available to obtain regulatory approvals, satisfy other closing conditions and prepare for a smooth transition of HSBI’s business to VyStar, by waiving their respective rights to terminate the purchase agreement until March 31, 2022. This waiver aligns with the terms originally negotiated in the purchase agreement, which provides for an outside date of March 31, 2022, if receipt of regulatory approvals remains the only material outstanding condition to closing.

HSBI, Heritage Southeast Bank and VyStar each continue to pursue regulatory approvals from the FDIC, the NCUA, the Georgia Department of Banking and Finance and the Florida Office of Financial Regulation.

There can be no assurance that the parties will receive regulatory approval during the first quarter, or at all. While the parties continue to work toward closing the proposed business combination, the parties recognize that the timing of regulatory approval and customer notifications may result in the closing of the transaction occurring after March 31, 2022. Required customer notifications include, among other things, a notice that must be given to customers at least 30 days before completion of the transaction.

About Heritage Southeast Bancorporation, Inc., and Heritage Southeast Bank:
Heritage Southeast Bancorporation, Inc. serves as the holding company for Heritage Southeast Bank, which is headquartered in Jonesboro, GA and operates under the names “Heritage Bank,” “The Heritage Bank,” and “Providence Bank” in its various markets. With approximately $1.7 billion in assets, the bank provides a well-rounded offering of commercial and consumer products through its 23 locations. For additional information, visit the HSBI website (myhsbi.com).

Forward Looking Statements:

This press release contains forward-looking statements. These forward-looking statements include, but are not limited to, statements about the benefits of the proposed acquisition of HSBI by VyStar, statements related to the expected timing of the completion of the acquisition, the combined company's plans, objectives, expectations and intentions, and other statements that are not historical facts.  Forward-looking statements may be identified by terminology such as "may," "will," "should," "scheduled," "plans," "intends," "anticipates," "expects," "believes," estimates," "potential," or "continue" or negatives of such terms or other comparable terminology.  All forward-looking statements in this press release, or in any other written or oral communication that relates to the proposed acquisition or to matters that may affect such proposed acquisition are subject to risks, uncertainties and other factors that may cause the actual results, performance, or achievements of HSBI or VyStar to differ materially from any results expressed or implied by such forward-looking statements. Such factors include, among others, (1) disruption from the proposed acquisition with customers, suppliers, employees or other business partners, (2) the occurrence of any event, change or other circumstances that could give rise to the termination of the agreement, (3) the ability by the parties to obtain required governmental approvals of the acquisition (4) the failure of the closing conditions in the agreement to be satisfied, or any unexpected delay in closing the acquisition, and (5) general competitive, economic, political and market conditions.

Heritage Southeast Bancorporation, Inc. and its subsidiary disclaim any obligation to update or revise any forward-looking statements contained in this communication (which statements speak only as of the date hereof), or in any other written or oral communication that relates to the proposed combination or to matters that may affect such proposed combination, whether as a result of new information, future events or otherwise.

CONTACT Leonard A. Moreland Chief Executive Officer	Philip F. Resch Chief Financial Officer
Heritage Southeast Bancorporation, Inc. 101 North Main Street P.O. Box 935 Jonesboro, GA 30236 (770) 824-9934

FAQ

What is the current status of HSBI's acquisition by VyStar?

HSBI has extended the deadline for regulatory approvals until March 31, 2022.

What are the main regulatory bodies involved in HSBI's acquisition?

The involved regulatory bodies include the FDIC, NCUA, Georgia Department of Banking and Finance, and Florida Office of Financial Regulation.

Could the acquisition of HSBI by VyStar be delayed?

Yes, regulatory approval timing and customer notifications may cause delays beyond March 31, 2022.

What is the significance of the March 31, 2022 date for HSBI?

It is the new deadline for obtaining regulatory approvals before the acquisition can close.

What are the potential risks in the HSBI and VyStar merger process?

Risks include failure to receive regulatory approval or delays in closing conditions.