The First Bank of Alabama and Bank of Wedowee merging. The move is expected to affect the Alabama loan market a lot and most likely it will narrow it.The move is a huge financial step which will expand the horizons of The Bank of Alabama. In addition to this, it will add three bank branches which are situated in Randolph County on the hands of the First Bank of Alabama.
This means that this bank will be controlling three service branches which are located in Lincoln, Roanoke, Talladega, Munford, Woodland, and Wedowee. The First Bank of Alabama and the Bank of Wedowee board of directors have both approved this transaction. However, more terms of the merger are yet to be discussed by both parties.
What The Merger Means
1. The partnership will make the Alabama loan market smaller.
2. First Bank of Alabama seeks to gain almost 530 million dollars in overall assets. In addition to this, the bank will also get 270 million dollars in overall loans and 445 million dollars in deposits.
3. The merger will broaden the presence of First Bank of Alabama in the Eastern Alabama region.
4. The acquisition will strategically place The Bank of Alabama near their target market region.
5. The Bank of Alabama will become one of the strongest independently owned community bank in the Alabama region.
Effect Of The Merger On The Alabama Loan Market
Perhaps the most salient feature of the merger of The First Bank of Alabama and Bank of Wedowee is the fact that it will narrow the Alabama loan market. Most Alabama dwellers depend on payday loans and loan sharks to control their financial spending and to finance random expenses. However, with the merger of The Bank of Alabama and Bank of Wedowee, this state of affairs is likely changing as the loan margin will be narrowed.
Most Americans are trying to survive in the tough economic situation that is being experienced all over the world. Nonetheless, a highly controlled temporary credit and loans market is needed to manage the budgets of every household.
All payday lenders in Alabama belong to The Community Financial Services Association Center makes it easier to regulate their activities.
However, when the partnership of the two strong banks in area is complete it means that The First Bank of Alabama will be able to offer loans with the best terms. This will make it easier for most people to acquire reliable loans and in turn the loan market will narrow down to more reliable sources. This will effectively cut back on the rate of ineffective loaners who want to take advantage of borrowers. In addition to this, instances of expensive internet loans and overdrafts are expected to subside.
The First Bank of Alabama CEO and President, Chad Jones was elated during the merger as he emphasized that the acquisition will geographically place the bank on its demographic region. In addition to this, he further pointed out that his team was proud to be associated with the Bank of Wedowee group. He also revealed that the merger will mean that the bank will get the principal market share in Randolph and Talladega regions.
He further pointed out that the combination of his tough management team and the local society; the merger will propel The First Bank of Alabama further. To sum it all up, the CEO was pleased with the acquisition which will place it in the best platform to offer excellent services to its customers. In addition to this he also looked forward to the working harmony of the employees and shareholders from both sides of the divide.
First Bank of Alabama plans to expand its services and offer additional services to not only its customers but also the Bank of Wedowee clients. Some of these services include a mobile app which will handle an Online Financial Wellness center and card management. Other services that the clients from both banks will enjoy include Internet Banking. The CEO OF The Bank of Alabama assured the bank of Wedowee clients that after the merger they will continue enjoying the same excellent service which they have been accustomed to but with another face.
Mitch Key who is the CEO, President and chairman of The Bank of Wedowee is also excited at the move of the merger with the First Bank of Alabama. During a candid speech the CEO also revealed that The Bank of Wedowee respects The Bank of Alabama and that they both share the same values. In addition to this, he promised his clients that they will continue to enjoy the same services and even more once the partnership is complete. Mitch Key will still work as an executive of the establishment even after the merger. He will be stationed at Randolph County.During the merger The First Bank of Alabama legal counsel was Jones Walker and the financial adviser was Stephens Inc. On the other hand, The Bank of Wedowee was financially advised by Porter White and Company and represented legally by Reynolds, Reynolds & Little LLC.
About The First Bank Of Alabama
The First Bank of Alabama was started in 1848 by Major James Isbell in Talladega County. Therefore, this makes the bank one of the oldest in the Alabama region. During its 170 years of existence it has managed to acquire 400 million dollars in acquisitions 202 million dollars in loans and 336 million dollars in deposits. The First Bank of Alabama is a subsidiary of The FirstBanc of Alabama Inc which is a bank holding company. The Alabama-based bank has branches in Munford, Talladega and Lincoln.
About The Bank Of Wedowee
The Bank of Wedowee was started in 1906 by Dr. J.C Swann. The Alabama-based bank has managed to accrue 132 million dollars in assets, 66 million in loans and 111 million dollars over the years which it has existed. The Bank of Wedowee operates under the Swann Bancshares Inc. as a subsidiary. The bank was placed under the company in October 2002. It has branches in Roanoke, Woodland and Wedowee.