Avadian Credit Union, formerly Alabama Telco Credit Union, announced that it is acquiring American Bank of Huntsville.
The Birmingham-based financial institution said it has entered into a definitive agreement to buy the Huntsville institution. The transaction, which has been approved by each entity's board of directors, is expected to close by late 2015.
The deal is dependent on shareholder and regulatory approvals.
Proceeds from the purchase and assumption transaction will be used to retire the debt of the bank and upon the dissolution of the bank, to return approximately $2 per share to shareholders. This includes repaying preferred stock issued by the U.S. Treasury TARP program.
Read more.
Read shareholder letter.
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