(RTTNews) - First Internet Bancorp (INBK), the parent company of First Internet Bank, said on Tuesday that it signed a definitive agreement to acquire First Century Bancorp, the parent company of First Century Bank, N.A. for $80 million in cash.
David Becker, Chairman and Chief Executive Officer of First Internet, commented, "... It aligns with our strategy of operating 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."
The latest transaction which is anticipated to close in the first quarter of 2022 and is expected to be 21 percent accretive to 2023 earnings per share and seven percent dilutive to tangible book value per share, with a tangible book value earnback period of approximately three years. As of September 30, 2021, First Century had total assets of $408 million, deposits of $330 million, and loans of $32 million.
First Internet has been advised by Keefe, Bruyette & Woods in the transaction.
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