NEWS BRIEFS: Two area banks merging, creating $2 billion in assets

Two Atlanta area banks are merging to create a bank with more than $2 billion in assets.

Georgia Banking Company, Inc. (“GBC”), the parent company of Georgia Banking Company, and Primary Bancshares Corporation (“PBC”), the parent company of Georgia Primary Bank, jointly announced today the signing of a definitive agreement under which PBC will merge with and into GBC in a stock and cash transaction with an aggregate value of approximately $27 million. The transaction is expected to close in the first half of 2025.

Georgia Primary Bank, based in Atlanta, has approximately $352 million in assets, $320 million in deposits, and $256 million in loans as of September 30, 2024. It operates two branches in Fulton and Forsyth Counties. 

GBC’s merger with PBC will improve the combined bank’s scale and expand its footprint across metro Atlanta. As of September 30, 2024, the combined bank would have $2 billion in pro forma deposits – representing a top three deposit market share for banks headquartered in the Atlanta metropolitan area. This merger positions GBC to fill the void in the Atlanta market for a community bank in the $2-5 billion asset size range, while providing, a better experience for customers and greater value for its shareholders.

Coxon

Morgan

Bartow Morgan, Jr., chief executive officer of GBC, says: ” Our market presence will be strengthened with this strategic move which aligns with our vision of expanding our franchise to better serve the metro Atlanta community. This transaction provides us an excellent opportunity to broaden our footprint in a low-risk manner. Georgia Primary Bank is a high-quality institution with great relationships and a shared cultural focus on the customer.” 

David Coxon, chief executive officer of PBC, says: “Partnering with GBC was not a difficult decision. We share the same values that are driven by our commitment to our customers and employees. The merger provides long-term growth potential for our shareholders and will enhance our ability to offer a broader range of solutions and present new business opportunities. We are excited about the combination’s substantial benefits to our community and stakeholders.”

 PBC’s Chairman H. Boyd Pettit, III, and Director Mark A. Scheinfeld will also join the GBC Board of Directors. Completion of the merger is subject to normal and customary closing conditions, including receipt of required regulatory approvals and approval by the shareholders of PBC. 

Jackson EMC Foundation awards $47,500 locally

The Jackson EMC Foundation board of directors awarded a total of $90,500 in grants for organizations during its recent meeting, including $47,500 to organizations serving Gwinnett County. 

• $15,000 to the Georgia Lions Lighthouse Foundation, Inc., to pay for eye surgeries for uninsured individuals in Clarke, Gwinnett, Hall and Jackson counties.
• $15,000 to J.M. Tull-Gwinnett Family YMCA, Lawrenceville, to sponsor 250 youth in Gwinnett and Barrow counties for its Afterschool Program, Clubs, and More Program.
• $10,000 to ConnectAbility, Inc., Dahlonega, for its Sidekicks Community Events Program for children and adults with disabilities and their families in Banks, Barrow, Gwinnett, Hall, Jackson and Lumpkin counties.
• $5,000 to the Burn Foundation of America, Inc. to provide patient and family services for burn victims throughout Jackson EMC’s service area.
• $2,500 to the Southeastern Railway Museum, Duluth, to support its Special Needs and Disadvantaged Students Fund for its Educational Classroom Modules Program.

Jackson EMC Foundation grants are made possible by the 216,765 participating cooperative members who have their monthly electric bills rounded to the next dollar amount through the Operation Round Up program. Their “spare change” has funded 1,962 grants to organizations and 434 grants to individuals, putting more than $20.8 million back into local communities since the program began in 2005.

NOTABLE

Peach Federal Credit Union reaches $1 billion in assets

Peach Federal Credit Union announced October 8 that it had reached $1 billion in assets. Peach State is one of eight credit unions in Georgia and one of seven in South Carolina to reach this milestone.

Boutwell

Peach State Federal Credit Union was originally founded in 1961 as Gwinnett Teachers Credit Union by a group of educators who shared a vision to provide the employees of Gwinnett County School system with a credit union. At the time, membership was open to all employees of Gwinnett County School System, there was no brick-and-mortar office or branch, and all files were stored in a cardboard box.

In the early days, the credit union only offered Savings Accounts. Its treasurer would drive a station wagon to all the schools and collect member’s deposits. A few years later, the credit union graduated from the cardboard box to a closet in the director’s office of Gwinnett County Vocational School. 

In 1973 Peach State achieved two monumental firsts – operations in an office space inside the Hooper Renwick Service Center and hiring a full-time employee, Peggy Kilgroe, who is still employed at the credit union to this day. In the early days of operations, Kilgroe played an integral role in managing the credit union’s operations. In 1986, the credit union hired its first ever paid CEO. Over the course of eight years, the credit union’s main headquarters relocated, a second branch was added, and assets grew to over $12 million.

In 1994, Marshall Boutwell was appointed president and chief operating officer, when the credit union had assets of $14 million. In the years following, the credit union expanded services to different school systems, added Select Employee Groups, and opened branches across several Georgia counties. In 2012, the Board of Directors approved the name change to the credit union known today as Peach State Federal Credit Union.

Under Boutwell’s leadership over the last 30 years, the credit union has experienced significant transformations that have positively impacted Peach State’s members and local communities. From adding branch locations to expanding into rural and underserved areas, and adding new products, services, and digital enhancements, to now reaching $1 billion in assets.

Over 60 years ago, seven pioneers sat at a dining room table with a vision to form a credit union that would help employees of the Gwinnett County School System. Today, Peach State has magnified that vision into serving over 77,000+ members across Georgia and South Carolina with 29 branch locations.