Cadence Bank Merges with FCB Financial Corp: A New Era in Georgia Banking

Cadence Bank Merges with FCB Financial Corp

Cadence Bank (NYSE: CADE) has announced a partnership with FCB Financial Corp, the holding company for Savannah, Georgia's First Chatham Bank. This merger marks a significant step in expanding Cadence's footprint in the burgeoning market of Georgia, particularly in the Greater Savannah area, which has seen notable economic growth recently.

Founded in 2002, First Chatham Bank has established a strong local presence with eight branches across the region, becoming the first community bank chartered in Chatham County since 1989. With assets totaling approximately $590 million, including $329 million in loans and $510 million in deposits as of September 30, 2024, the bank has built a solid reputation rooted in community service.

Under the terms of this merger, Cadence Bank will exchange 2,300,000 shares of its common stock along with $23.1 million in cash for all outstanding shares of FCB Financial Corp. Based on the valuation calculated from Cadence Bank's stock price of $34.98 as of January 21, 2025, the entire transaction is estimated at around $103.6 million.

Dan Rollins, chairman and CEO of Cadence Bank, expressed enthusiasm over the deal, highlighting how First Chatham's dedication to customer service aligns with Cadence's values. He stated, “Together, we'll build on shared values of service and trust to provide significant financial solutions.” Rollins emphasized the partnership’s importance in a diverse regional economy supported by sectors like manufacturing, tourism, and real estate.

Steve Green, chairman of FCB Financial Corp, shared similar sentiments, noting their excitement about merging with Cadence. He believes this merger will empower their team to enhance service delivery and innovate product offerings. Green pointed out that this collaboration is a natural progression of over two decades of service commitment in Savannah and Coastal Georgia.

The merger has already received unanimous approval from the boards of directors of both entities and is expected to close in the third quarter of 2025, pending regulatory approvals and shareholder validations. With this strategic alliance, Ken Farrell, the current President and CEO of First Chatham Bank, will step into the role of Division President for Cadence Bank overseeing Southeast Georgia.

Cadence Bank, a regional banking franchise boasting around $50 billion in assets and over 350 branches throughout the South and Texas, offers a diverse portfolio of innovative banking solutions. Their services range from consumer banking to wealth management and more.

As preparations for the merger unfold, significant information about the combined strategy and operational plans has been posted on Cadence's Investor Relations site for public access. The merger reflects an adaptive approach to cater to the growing needs of customers in a competitive banking landscape while enhancing the services offered in the community.

In conclusion, this merger signifies not just a strategic move for Cadence Bank but also a broader commitment to enhancing financial services for local families and businesses in Georgia. The collaborative spirit between Cadence and First Chatham Bank promises to yield significant benefits for the combined customer base.

For detailed updates regarding Cadence Bank and other related information, visit their official website at CadenceBank.com.