ATLANTA - Atlanta Postal Credit Union (APCU), the largest postal credit union in the U.S., has announced a definitive agreement to acquire Affinity Bank, a subsidiary of Affinity Bancshares, Inc. (NASDAQ: AFBI). The all-cash transaction will involve APCU purchasing most assets and assuming most liabilities of Affinity Bank.
The boards of both APCU/Center Parc and Affinity have unanimously approved the deal, which is slated for completion between the fourth quarter of 2024 and the first quarter of 2025, pending regulatory and shareholder approvals. Following the closure, Affinity and Affinity Bank will liquidate and distribute remaining assets to Affinity shareholders. APCU will pay an estimated aggregate amount to provide Affinity with about $22.50 per share available for distribution to its shareholders.
This acquisition is part of APCU's strategy to extend its services in Atlanta and nearby communities, enhancing its market base and expertise. Affinity Bank's customers will transition to APCU/Center Parc members, gaining access to a broader range of financial services, including digital banking and loans.
APCU/Center Parc President & CEO Blake Graham expressed enthusiasm for welcoming Affinity Bank’s customers and the opportunity to further APCU’s growth strategy. Edward J. Cooney, President and CEO of Affinity, also remarked positively on the merger, highlighting the shared values and commitment to community service between the two institutions.
Post-acquisition, APCU/Center Parc will maintain Affinity Bank's locations in Newton County and Northwest Atlanta, ensuring continued service for the bank's clients.
The transaction was advised by Hovde Group, LLC for APCU/Center Parc, with Honigman, LLP providing legal counsel. Affinity received financial advice from Performance Trust Capital Partners, LLC, which also offered a fairness opinion, and legal counsel from Luse Gorman, PC.
Affinity Bank, a Georgia-based institution with approximately $870 million in assets, has served the business community since 1928, specializing in industry-specific solutions. APCU, established nearly a century ago, is a not-for-profit financial cooperative with nearly $2.5 billion in assets, serving over 105,000 members.
This news is based on a press release statement from the involved companies. Shareholders of Affinity Bancshares will receive further information through a proxy statement ahead of a special meeting to vote on the transaction.
InvestingPro Insights
As Atlanta Postal Credit Union (APCU) sets its sights on expanding its footprint in the Atlanta area through the acquisition of Affinity Bank, investors and stakeholders of Affinity Bancshares, Inc. (NASDAQ: AFBI) are closely monitoring the company's financial health and market performance. Affinity Bancshares, with a market capitalization of approximately $108.76 million, has been trading near its 52-week high, with its share price reaching 97.86% of this peak value. The company's price-to-earnings (P/E) ratio stands at 18.21, reflecting investor expectations of future earnings growth.
Despite a slight decline in revenue growth over the last twelve months as of Q1 2024, with a decrease of 3.91%, Affinity Bancshares has remained profitable during this period. This performance is underscored by an operating income margin of 26.7%, which indicates efficient management and the potential for sustained profitability. It's noteworthy that the company does not pay a dividend, which may be a strategic decision to reinvest earnings into the business to fuel further growth.
Investors considering the implications of the upcoming acquisition may find these metrics to be of particular interest. Two InvestingPro Tips highlight that Affinity Bancshares suffers from weak gross profit margins and that it is trading near its 52-week high. These insights could be crucial for assessing the timing and potential benefits of the acquisition. For a deeper dive into Affinity Bancshares' financials and additional InvestingPro Tips, interested parties can explore the comprehensive analysis provided on the InvestingPro platform.
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