First Internet Bancorp has agreed to acquire First Century Bancorp, the parent company of First Century Bank, for $80m.

The deal will provide First Internet with access to additional growth opportunities as well as enable it to further diversify its revenue profile.

First Century Bancorp: Details

Founded in 2002, First Century Bancorp focuses on delivering technology-driven financial solutions. The company’s subsidiary First Century Bank offers payment services, tax product lending, prepaid cards and HOA services.

Additionally, the service portfolio includes business banking, specialty lending and deposit products through its two branches.

First Century Bancorp is headquartered in Roswell, Georgia.

As of 30 September 2021, the company had total assets of $408m.

Transaction Details:

As agreed, First Internet will buy all outstanding shares of First Century common stock for $80m in cash. It will fund the transaction with available on-balance sheet cash.

All First Century’s employees, including the senior management, are also expected to switch to First Internet.

First Internet expects the transaction to be 21% accretive to 2023 earnings per share.

The transaction is slated to close in the first quarter of next year, subject to regulatory approvals and green light from First Century shareholders.

Once complete, First Century Bank will merge into First Internet Bank. It will continue to maintain operations of its business lines in its current locations.

Quote:

First Internet chairman and CEO David Becker said: “The acquisition of First Century is an important opportunity for our organisation.

“First, it aligns with our strategy of operating

Source:

https://www.businesswire.com/news/home/20211102005737/en

https://pixabay.com/photos/deal-business-agreement-finance-4131445/

unique and scalable businesses with nationwide platforms. Second, it allows us to continue to diversify and grow our revenue streams in a capital efficient manner.

“And, importantly, First Century’s success in the HOA business grants us access to a very attractive deposit base, with opportunity to expand.”

First Internet Bancorp had total assets of around $4.3bn, as of September 30, 2021.