The deal transfers four branches and $83 million in deposits as Southern Bank sharpens its commercial focus and Palmetto Citizens grows beyond South Carolina.

Southern Financial Corporation and its subsidiary, Southern Bank, announced Tuesday that they have entered into a definitive agreement to sell the bank’s four Georgia branches to Palmetto Citizens Federal Credit Union, marking the credit union’s first expansion outside South Carolina.

Under the agreement, Palmetto Citizens will acquire the physical locations and most of the deposit and loan accounts associated with Southern Bank’s Georgia branches, which together hold about $83 million in deposits and $20 million in loans as of Sept. 30. The credit union plans to hire all current Southern Bank employees at those locations.

Southern Financial said the sale is expected to increase its tangible book value per share by between $0.75 and $1.00 upon closing. The transaction, subject to regulatory approval and customary closing conditions, is expected to be completed in the first half of 2026.

“As Southern Bank has evolved into a commercially focused community bank over the past couple years, we began assessing our options related to portions of our enterprise that did not entirely fit the new business plan,” said Jamin Hujik, Executive Vice Chairman of Southern Bank. “The sale of our Georgia branches to Palmetto Citizens will provide additional capital for the continued growth of the bank for shareholders and a strong consumer and community focused partner for our team members, customers and communities.”

Robert Dozier, President and CEO of Palmetto Citizens, said the move aligns with the credit union’s long-standing commitment to community service. “For nearly 90 years, Palmetto Citizens has stood for trust, stability, and care for our members and the communities we serve,” he said.

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Southern Bank, founded in 1945, operates eight locations in South Carolina and Georgia and holds approximately $360 million in assets. Palmetto Citizens manages more than $1.4 billion in assets and serves more than 86,000 members through 14 branches.

Until the transaction is finalized, both institutions said it will be business as usual for their customers. Upon closing, Southern Bank’s Georgia branch customers will become members of Palmetto Citizens.

The credit union reported earnings of $15.1 million through the first three quarters of 2025, which represents a 31% increase compared to the same period last year, according to NCUA call report data.

Southern Bank reported net income of $274,000 in the first six months of 2025 compared to $162,000 a year ago, according to FDIC data.

The branch acquisition is part of a broader trend that has seen credit unions increasingly pursue whole bank purchases, an evolution that has stirred both opportunity and concern across the financial services industry. So far in 2025, 12 such deals have been announced.

That figure lags behind 2024’s record pace of 22.

“This agreement represents an exciting opportunity to build on that legacy by thoughtfully expanding our service beyond South Carolina and into Georgia.”

– Robert Dozier
President & CEO
Palmetto Citizens Federal Credit Union