Tuscaloosa and Jasper, Alabama – Alabama Credit Union of Tuscaloosa, AL (“ACU”) announced today that it has entered into an agreement (the “Agreement”) to purchase Security Federal Savings Bank of Jasper, AL (“Security Federal Savings”), the banking subsidiary of Se-Fed Bancshares, Inc. The transaction will be structured as a purchase and assumption and the consideration will be all-cash. Other financial terms were not disclosed.
Founded in 1971, Security Federal Savings is a full-service community bank with total assets of $39 million. The transaction will expand ACU’s footprint in north Alabama and increase its total assets to approximately $1.3 billion.
Steve Swofford, President and CEO of ACU stated, “We are very excited that Security Federal Savings Bank has agreed to join with Alabama Credit Union, bringing together two organizations that have a shared philosophy of putting our members and customers first. This is another step in our plan to enhance the member value and experience for our many existing members that live or work in Walker County. We also look forward to welcoming Security Federal Savings customers as new members of ACU, and believe they will appreciate our approach of providing exceptional personal service along with additional financial products. Security Federal Savings’ customers will see familiar faces when they visit the new ACU office, as employees of the Security Federal Savings staff will be joining ACU’s staff.”
“We’re thrilled to join forces with Alabama Credit Union,” said Todd Thompson, President and CEO of Security Federal Savings. “We share many values and business philosophies that will enable this agreement to be a win for all parties involved. And especially for our customers who can look forward to expanded solutions and convenience while enjoying the same friendly service they’ve come to expect here in Jasper. It was also extremely important for us to partner with an organization as committed to supporting the local community in various ways, and Alabama Credit Union certainly has that reputation across the state.”
The transaction, which has been unanimously approved by the Board of Directors of both institutions, is expected to be completed no later than the first quarter of 2022 and is subject to customary conditions, including regulatory approvals and approval by the shareholders of Se-Fed Bancshares, Inc.
ACU was advised in the transaction by the law firm of Honigman LLP. Olsen Palmer LLC served as Security Federal Savings’ financial advisor while Breyer & Associates PC served as Security Federal Savings’ legal advisor.