First Web Financial institution introduced Tuesday (Nov. 2) it had inked an settlement to accumulate First Century Financial institution, saying the transfer allowed it a number of alternatives for development and diversification.
Primarily based in Roswell, Georgia, First Century has enterprise traces centered on funds tax product lending, sponsored card packages and householders affiliation providers, all of which First Web Chairman and CEO David Becker says represents an vital alternative.
“First, it aligns with our technique of working distinctive and scalable companies with nationwide platforms,” Becker mentioned in a information launch.
“Second, it permits us to proceed to diversify and develop our income streams in a capital environment friendly method. And, importantly, First Century’s success within the HOA enterprise grants us entry to a really engaging deposit base, with alternative to broaden,” he mentioned.
First Century Chairman and CEO William Blanton referred to as the acquisition — anticipated to turn into ultimate within the first quarter of subsequent yr — a “pure step” in his financial institution’s evolution.
“We imagine First Web’s bigger steadiness sheet, digital banking experience and broader array of merchandise will improve our present consumer relationships and allow us to drive long-term development for the mixed group,” he mentioned.
The settlement will see the Indiana-based First Web purchase all excellent shares of First Century frequent inventory for $80 million in money, funding the transaction with accessible on-balance sheet money. As of the tip of September, First Web had $408 million in whole property, $330 million in deposits and loans of $32 million.
When the acquisition is concluded, First Century will merge into First Web, sustaining operations of its enterprise traces at its present places: a department in Commerce, Georgia, to help client and small enterprise banking, and one other in Hilton Head Island, South Carolina.
A bulk of First Century’s workers will be part of First Web, together with key members of the First Century senior administration crew.
Learn extra: Banking M&A Exercise On a Sizzling Streak Once more
The acquisition comes at a time when regional banks are engaged in a flurry of merger and acquisitions exercise.
As PYMNTS famous in September, the pattern slowed to a trickle final yr through the pandemic lockdowns, from 160 mergers in 2019 to 44 in 2020. By the second quarter of 2021, nevertheless, the reported variety of mergers ticked again up 53 for the yr.
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