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CapStar Financial Closes Merger Deal, Expands in Tennessee
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CapStar Financial Holdings, Inc. has closed the merger deal with Tennessee-based FCB Corporation for $85.1 million. The stock-cum-cash deal, announced in January, will further expand the company’s reach in the southern part of Middle Tennessee.
Further, FCB Corp.’s wholly-owned two banking subsidiaries — The First National Bank of Manchester (“FNBM”) and The Bank of Waynesboro (“BOW”) — have merged with CapStar Bank, as part of the transaction. CapStar Bank is the banking subsidiary of CapStar Financial.
FCB Corp. added nine branches located in Cannon, Coffee, Lawrence, Rutherford and Wayne counties to CapStar Financial. Moreover, assets worth nearly $480 million as of Mar 31, 2020 were added to the company’s balance sheet.
Under the terms of the merger deal, shares of FCB Corp. were collectively converted into the right to receive 2.96 million shares of CapStar Financial and $22.2 million in cash.
Additionally, per the BOW merger agreement, shares of BOW were collectively converted into the right to receive 0.66 million shares of CapStar Financial and $5.1 million in cash.
Timothy K. Schools, CapStar president and CEO said, “The partnership follows our successful 2018 merger with Athens Federal in East Tennessee, and establishes our presence in several exciting new markets, including fast-growing Rutherford County (Murfreesboro).”
CapStar Financial had acquired Athens Bancshares for $92.9 million. The deal expanded the company’s reach throughout the Eastern Tennessee corridor between Chattanooga and Knoxville.
While lower interest rates and economic slowdown due to the coronavirus pandemic will likely hurt CapStar Financial’s profitability in the near term, a strong balance sheet position and inorganic growth efforts are expected to provide support.
So far this year, consolidations in the banking sector have been few and far between as the virus outbreak and resultant economic slowdown put the brakes on the same. Nonetheless, a few notable deals include South State Corporation’s (SSB - Free Report) merger with CenterState Bank Corp, FB Financial Corporation’s (FBK - Free Report) collaboration with Franklin Financial Network in January and Pacific Premier Bancorp’s (PPBI - Free Report) alliance with Opus Bank in February.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
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CapStar Financial Closes Merger Deal, Expands in Tennessee
CapStar Financial Holdings, Inc. has closed the merger deal with Tennessee-based FCB Corporation for $85.1 million. The stock-cum-cash deal, announced in January, will further expand the company’s reach in the southern part of Middle Tennessee.
Further, FCB Corp.’s wholly-owned two banking subsidiaries — The First National Bank of Manchester (“FNBM”) and The Bank of Waynesboro (“BOW”) — have merged with CapStar Bank, as part of the transaction. CapStar Bank is the banking subsidiary of CapStar Financial.
FCB Corp. added nine branches located in Cannon, Coffee, Lawrence, Rutherford and Wayne counties to CapStar Financial. Moreover, assets worth nearly $480 million as of Mar 31, 2020 were added to the company’s balance sheet.
Under the terms of the merger deal, shares of FCB Corp. were collectively converted into the right to receive 2.96 million shares of CapStar Financial and $22.2 million in cash.
Additionally, per the BOW merger agreement, shares of BOW were collectively converted into the right to receive 0.66 million shares of CapStar Financial and $5.1 million in cash.
Timothy K. Schools, CapStar president and CEO said, “The partnership follows our successful 2018 merger with Athens Federal in East Tennessee, and establishes our presence in several exciting new markets, including fast-growing Rutherford County (Murfreesboro).”
CapStar Financial had acquired Athens Bancshares for $92.9 million. The deal expanded the company’s reach throughout the Eastern Tennessee corridor between Chattanooga and Knoxville.
While lower interest rates and economic slowdown due to the coronavirus pandemic will likely hurt CapStar Financial’s profitability in the near term, a strong balance sheet position and inorganic growth efforts are expected to provide support.
Shares of this Zacks Rank #2 (Buy) stock has rallied 18.2%, outperforming the industry’s rise of 8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
So far this year, consolidations in the banking sector have been few and far between as the virus outbreak and resultant economic slowdown put the brakes on the same. Nonetheless, a few notable deals include South State Corporation’s (SSB - Free Report) merger with CenterState Bank Corp, FB Financial Corporation’s (FBK - Free Report) collaboration with Franklin Financial Network in January and Pacific Premier Bancorp’s (PPBI - Free Report) alliance with Opus Bank in February.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>