Cadence Acquires FCB Financial, Expands Footprint in Savannah
Deal News | Jan 31, 2025 | EIN
Cadence Bank, a regional financial institution based in Houston and Tupelo, announces its acquisition of FCB Financial Corp., the parent company of First Chatham Bank, as part of its strategic expansion initiative. Valued at approximately $103.6 million, the deal involves Cadence issuing 2.3 million shares of common stock along with $23.1 million in cash. Set to conclude in the third quarter of 2024, this acquisition is pivotal for Cadence’s growth in the Savannah market, where it currently holds a minimal presence. Spearheaded by CEO Dan Rollins, the bank aims to become a preferred acquirer, anticipating positive impacts on earnings within the first year post-acquisition. Additionally, economic optimism and expected deregulation are fueling increased interest in M&A for Cadence and similar institutions. The deal highlights the bank's strategic interest in diverse markets tied to manufacturing, logistics, and real estate. Concurrently, Cadence reports a slight decline in 2024 revenue expectations but notes a significant increase in loans and deposits over the past year.
Sectors
- Banking and Finance
- Mergers and Acquisitions
Geography
- United States – The acquisition involves Cadence Bank headquartered in Texas and operations within Georgia, meeting a strategic expansion within the U.S. market.
- Georgia – Pertains to the acquisition of First Chatham, a Savannah-based bank, and Cadence’s expansion within the state.
- Texas – Headquarters of Cadence Bank, providing context to the financial institution involved in the acquisition.
Industry
- Banking and Finance – Relates to Cadence Bank's acquisition of FCB Financial Corp., involving financial transactions and banking operations.
- Mergers and Acquisitions – Focused on Cadence Bank's strategic acquisition of First Chatham, impacting its expansion plans and market presence.
Financials
- $103.6 million – Valuation of the acquisition deal between Cadence Bank and FCB Financial Corp.
- 2.3 million shares of common stock – Part of the transaction payment issued by Cadence Bank.
- $23.1 million in cash – Cash portion of the transaction payment issued by Cadence Bank.
- 70 cents per share – Earnings per share reported by Cadence Bank for Q4 2024.
- $130.34 million – Net income available to common shareholders reported by Cadence Bank for Q4 2024.
- $450.69 million – Revenue reported by Cadence Bank for Q4 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Cadence Bank | Acquirer | Company | A regional bank based in Houston and Tupelo engaging in strategic market expansion. |
| FCB Financial Corp. | Target | Company | The parent company of First Chatham Bank, operating as a community bank in Savannah, Georgia. |
| First Chatham Bank | Subsidiary | Company | A Savannah, Georgia-based community bank involved in the acquisition by Cadence Bank. |
| Dan Rollins | CEO | Person | Chairman and CEO of Cadence Bank, leading the strategic expansion efforts. |
| Ken Farrell | Future Division President | Person | President and CEO of First Chatham who will join Cadence as its division president for Southeast Georgia post-acquisition. |
| Janney Montgomery Scott LLC | Financial Adviser | Company | Serves as the financial adviser for FCB Financial Corp. during the transaction. |
| Alston & Bird LLP | Legal Counsel | Company | Provides legal counsel for FCB Financial Corp. in the acquisition deal. |