First Bank of Alabama and First Fidelity Bank to Merge in Major Deal

First Bank of Alabama and First Fidelity Bank Merge

In a significant development in Alabama's banking landscape, First Bank of Alabama, based in Talladega, has officially announced its acquisition of First Fidelity Bank from Fort Payne. The merger will see First Fidelity Bank incorporated into First Bank of Alabama under a definitive agreement signed on December 10, 2025.

The deal, valued at $20.5 million, will enable First Bank of Alabama to acquire First Fidelity Bank at approximately $52.56 per share. The financial terms specify that 60% of the payment will be made in common stock from First Bank of Alabama, while the remaining 40% will be settled in cash. Shareholders of First Bank of Alabama are expected to own around 90% of the newly combined entity, reflecting a substantial consolidation in the banking industry in Alabama.

Chad Jones, the President and CEO of First Bank of Alabama, expressed enthusiasm for the partnership, stating, "We could not be more excited to partner with First Fidelity Bank. This combination furthers our goal of being a strong, vibrant community bank in the state of Alabama and expands our footprint in East Central Alabama. We look forward to serving First Fidelity's markets in northeast Alabama and to welcoming its shareholders, employees, and customers into the First Bank of Alabama family."

Steve Eberhart, President and CEO of First Fidelity Bank, also shared his excitement about the merger, emphasizing the importance of this union for their longstanding commitment to serving communities in Dekalb County and beyond. He remarked, "We have a 60-year history of serving our communities and this partnership will ensure that our legacy continues."

This merger brings together First Fidelity Bank's locations in cities such as Fort Payne, Ider, Rainsville, and Mentone, expanding First Bank of Alabama’s total assets to approximately $1.3 billion and increasing their total number of full-service locations to 18 across Alabama.

The merger has received unanimous approval from the boards of both banks. However, it remains subject to standard conditions, which include the approval from First Fidelity Bank's shareholders and necessary regulatory approvals. The transaction is anticipated to close no later than the second quarter of 2026.

Olsen Palmer LLC served as the financial advisor for First Bank of Alabama while Compton Jones Dresher LLP provided legal advice. On the other side, First Fidelity Bank was advised by Performance Trust Capital Partners, LLC for financial matters and Jones Walker LLP for legal perspectives.

About the Banks

First Bank of Alabama is not only the oldest bank in Alabama, having been established in 1848, but it is also recognized for its full-service community banking which includes a wide range of financial services tailored to local customers. The main office is situated in Talladega, with multiple branches throughout the state.

First Fidelity Bank, established in 1965, has built its reputation as a community bank dedicated to serving the financial needs of residents in DeKalb County and surrounding areas, offering competitive deposit and loan products alongside strong community involvement.

As the merger unfolds, customers, employees, and stakeholders from both banks can look forward to enhanced services and expanded offerings, which aim to set new benchmarks in community banking in Alabama.