FirstBank Parent Inks Branch Buy Deal
authors Geert De Lombaerde
FB Financial executives have agreed to pay almost $38 million for 14 branches in Chattanooga and East Tennessee, a deal that will grow their deposit base by nearly 15 percent.
The deal between the parent of FirstBank and Atlantic Capital Bancshares covers 11 offices in Tennessee and three in Northwest Georgia, although FB’s leaders plan to close six of those because they’re close to existing FirstBank offices. Combined, those offices are home to nearly 29,000 accounts, about $600 million in deposits and $380 million in loans. They employ roughly 120 people. When completed — which is expected early in the second quarter of next year — the purchase will make FirstBank the No. 5 deposit holder in the Chattanooga market and No. 7 in Knoxville.
“Opportunities to add valuable customer relationships on this scale are scarce, and we are excited about the future prospects of this transaction,” said Chris Holmes, president and CEO of downtown-based FB Financial. “We welcome Atlantic Capital’s customers and employees to the FirstBank family.”
Holmes and his team expect their new branches to be immediately accretive to FB’s profits and earn back their cost in less than four years.
FB shares (Ticker: FBK) closed Wednesday at $37.75, down about 1.5 percent on the day. Over the past six months, they are down about 10 percent.
FirstBank has been named as one of Middle Tennessee’s Top Workplaces by The Tennessean for four years running, winning the 2018 Hall of Fame award. To be a Top Workplace, FirstBank met high standards for a healthy workplace culture as ranked by its own employees.