Synovus Financial announced on Tuesday (July 24) that it is acquiring FCB Financial Holdings, owner of Florida Community Bank (FCB), Florida’s largest community bank, in a deal valued at $2.9 billion.
According to a press release, Synovus said that with the addition of FCB, they will become a top five regional bank by deposits in the Southeast region, with pro forma $36 billion in deposits and $44 billion in assets. The transaction is expected to close by the first quarter of next year.
“We look forward to welcoming FCB customers and team members to the Synovus family and are enormously excited about the growth and value-creation opportunities this transaction presents for our combined companies and respective shareholders,” said Kessel Stelling, Synovus chairman and CEO. “This acquisition will expand our presence in the high-growth South Florida marketplace while leveraging FCB’s market-leading reputation, culture and successful organic growth platform.”
According to Synovus, once the deal closes, it will be the largest mid-cap bank in the Southeast by deposits. Following the closing, FCB will merge with Synovus Bank and operate under the Synovus brands. FCB Financial Holdings President and CEO Kent Ellert will serve as executive vice president of Synovus and Florida market president.
Under the terms of the deal, FCB shareholders will get 1.055 shares of Synovus common stock for each common share of FCB in an all-stock transaction. Based on Synovus’ closing share price on July 23, the transaction is valued at $58.15 per FCB share, or $2.9 billion. Following completion of the merger, former FCB shareholders will own approximately 30 percent of the combined company. Synovus said it will gain $9.9 billion in deposits and will have about $40 million in pretax synergies, which will be fully realized by 2020. Excluding one-time charges, the bank said it expects the deal to be about 6.5 percent accretive to earnings per common share in 2020.