First Internet Bank acquires First Century Bank
First Internet bank announced on Tuesday (November 2) that it had signed an agreement to acquire First century bank, affirming that this decision has allowed it multiple opportunities for growth and diversification.
Headquartered in Roswell, Georgia, First Century has business lines focused on tax product lending, sponsored card programs, and homeowner association services, which David Becker, president and CEO of First Internet, says. represent an important opportunity.
“First and foremost, this aligns with our strategy of operating unique and scalable businesses with national platforms,” Becker said in a press release.
“Second, it allows us to continue to diversify and grow our revenue streams in a capital efficient manner. And, more importantly, First Century’s success in the HOA business gives us access to a very attractive deposit base, with the ability to grow ”, he said.
First Century President and CEO William Blanton called the acquisition – which is expected to become final in the first quarter of next year – a “natural step” in his bank’s evolution.
“We believe that First Internet’s larger balance sheet, digital banking expertise and broader product line will enhance our existing customer relationships and enable us to drive the long-term growth of the combined organization,” he said. declared.
The deal will see Indiana-based First Internet acquire all of the outstanding common shares of First Century for $ 80 million in cash, funding the transaction with cash available on the balance sheet. At the end of September, First Internet had total assets of $ 408 million, deposits of $ 330 million and loans of $ 32 million.
Upon completion of the acquisition, First Century will merge with First Internet, maintaining the operations of its lines of business at its current locations: a branch in Commerce, Georgia, to support personal and small business banking, and a another at Hilton Head Island, South Carolina.
A large portion of First Century employees will join First Internet, including key members of the First Century management team.
Read more: Bank M&A activity on hot new streak
The acquisition comes at a time when regional banks are engaged in a wave of M&A activity.
As PYMNTS noted in September, the trend slowed down last year during pandemic lockdowns, from 160 mergers in 2019 to 44 in 2020. In the second quarter of 2021, however, the reported number of mergers increased. of 53 for the year. .