Posted On: May 25, 2017 by First Bank of Alabama in:
Talladega, AL— FirstBanc of Alabama, Inc. (“FirstBanc”) and Swann Bancshares, Inc. announced today the signing of a definitive agreement for FirstBanc, the parent company of First Bank of Alabama, to acquire Swann Bancshares, Inc. and its wholly-owned subsidiary, Bank of Wedowee, in an all-cash transaction. The transaction has been approved by the board of directors of both companies and is expected to close in the 4th quarter of 2017, subject to customary conditions, including regulatory approvals and approval from shareholders of Swann Bancshares, Inc. Additional terms of the agreement were not disclosed.
Upon completion of the transaction, First Bank of Alabama will have approximately $530 million in total assets, $270 million in total loans and $445 million in deposits. The acquisition expands First Bank of Alabama’s presence in eastern Alabama with the addition of three full-service branches in Randolph County. In total, upon completion of the transaction, First Bank of Alabama will operate six full-service branches in the Alabama cities of Talladega, Lincoln, Munford, Wedowee, Woodland and Roanoke.
“We are excited about the Bank of Wedowee team and Mitch Key joining First Bank of Alabama” said FirstBanc President and CEO Chad Jones. “This transaction will strengthen our presence in our targeted market area and positions the combined bank with leading market share in both Talladega and Randolph Counties. In addition to the geographical benefits, this combination also pushes us towards our goal of being amongst the highest performing independently owned community banks in the state. With a strong management team that has been and continues to be a significant part of the local community, this partnership will enable us to collectively offer the best financial solutions to current and future customers. We look forward to collectively staying focused on providing a culture that attracts, empowers, and rewards our employees and achieving superior returns for our shareholders through our combined quality, strength, service, and integrity.”
Mitch Key, the Chairman, President and CEO of Bank of Wedowee added “We are excited about partnering with First Bank of Alabama given its nearly 170 year history of serving customers in Alabama. This experienced bank and management team shares our values on local decision making, community involvement, and quality of financial services. The resources available to us through this partnership will allow us to expand our product and service offerings to our customers.” Following the closing of the transaction, Key will remain an executive of the company, working from Randolph County.
FirstBanc of Alabama, Inc. was advised by Stephens Inc. as financial advisor, and Jones Walker as legal counsel. Swann Bancshares, Inc. was advised by Porter White & Company as financial advisor, and Reynolds, Reynolds & Little, LLC as legal counsel.
About FirstBanc of Alabama, Inc.
FirstBanc of Alabama, Inc. is an Alabama-based bank holding company which operates through its subsidiary, First Bank of Alabama. As of March 31, 2017, the bank reported $400 million in assets, $202 million in loans and $336 million in deposits. The company operates three branches in Talladega, Lincoln, and Munford. Formed in 1848, the bank is the oldest continuously operated bank in the State of Alabama.
About Swann Bancshares, Inc.
Swann Bancshares, Inc. is an Alabama-based bank holding company which operates through its subsidiary, Bank of Wedowee. As of March 31, 2017, the bank reported $132 million in assets, $66 million in loans and $111 million in deposits. The company operates three branches in Wedowee, Woodland, and Roanoke. The bank was founded in 1906.