FirstBanc of Alabama, Inc. (“FBAI”), parent company of First Bank of Alabama, and FBDC Financial Corp. (“FBDC”), parent company of First Fidelity Bank, announced today the signing of a definitive agreement whereby FBDC will be merged with and into FBAI; additionally, First Fidelity Bank will be merged with and into First Bank of Alabama as part of the transaction. FBAI will pay $20.5 million in the aggregate, with 60% of the purchase price to be paid in FBAI stock and 40% to be paid in cash. Legacy FBAI shareholders will own approximately 90% of the combined institution and legacy FBDC shareholders will own roughly 10%. In connection with the transaction, one director of FBDC will join the boards of FBAI and First Bank of Alabama.
Olsen Palmer LLC served as financial advisor and issued a fairness opinion to FirstBanc of Alabama, Inc.
After the transaction, First Bank of Alabama will have total assets of approximately $1.3 billion. The transaction has been unanimously approved by the Boards of both institutions but remains subject to customary conditions, including the approval of FBDC Financial Corp.’s shareholders and the receipt of required regulatory approvals.
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