By the Numbers: Breaking Down FirstBank’s $284 Million Deal
As published in the Nashville Business Journal
Meg Garner, Reporter, Nashville Business Journal
Hey Knoxville: Nashville’s FirstBank is coming for you.
On Wednesday, FirstBank announced it is buying two banks – Knoxville’s Clayton Bank and Trust and Tullahoma’s American City Bank — for $284.2 million. Both banks are subsidiaries of Clayton HC Inc., a holding company owned by Knoxville billionaire Jim Clayton.
Overall, there are several reasons adding the two Clayton banks makes sense for FirstBank; here’s a look at some of the numbers behind this deal:
First, let’s look at the size of the deal. At $284 million, the Clayton banks’ acquisition is one of FirstBank’s largest to date. In order to shoulder the deal’s price tag, FirstBank will pay for the acquisition with 5.86 million shares of FirstBank stock (valued at $144.7 million as of Tuesday’s market close), $60 million in subordinated debt and $79.5 million in cash, according to a news release.
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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.