Cadence Bank’s $103m merger with FCB Financial: What it means for Georgia’s banking landscape

Cadence Bank has successfully completed its $103.6 million acquisition of FCB Financial Corp., the holding company for First Chatham Bank, marking a significant expansion into the Savannah and Coastal Georgia markets. This strategic move enhances Cadence’s presence in a region experiencing robust economic growth and aligns with its broader objective of deepening community banking roots across the southeastern United States.

First Chatham Bank: A Community-Centric Institution

Established in 2002, First Chatham Bank has been a cornerstone of the Savannah banking community, operating eight branches and employing over 100 individuals. As the first community bank chartered in Chatham County since 1989, it has cultivated strong local relationships and a reputation for personalized service. At the time of acquisition, First Chatham Bank reported assets of $590 million, loans totaling $329 million, and deposits amounting to $510 million .

Strategic Rationale Behind the Merger

The acquisition is a calculated effort by Cadence Bank to bolster its footprint in a high-growth market. Savannah’s economic landscape, characterized by a thriving port, tourism, and manufacturing sectors, presents ample opportunities for financial institutions. By integrating First Chatham Bank’s operations, Cadence aims to leverage established customer relationships and local market knowledge to enhance service offerings and drive growth.

Dan Rollins, Chairman and CEO of Cadence Bank, emphasized the merger’s alignment with the bank’s commitment to community-focused banking. He noted that the integration would enable Cadence to offer a comprehensive suite of financial products and services to a broader customer base in Georgia, fostering economic development and supporting local businesses.

Leadership Continuity and Community Engagement

To ensure a seamless transition and maintain the community-centric approach that First Chatham Bank’s customers value, Ken Farrell, a seasoned leader from FCB Financial Corp., will assume a significant leadership role within Cadence Bank’s Savannah operations. His continued involvement is expected to preserve the bank’s local identity and strengthen customer trust during the integration process.

Cadence Bank’s Growth Trajectory and M&A Strategy

This merger is part of Cadence Bank’s ongoing strategy to expand through targeted acquisitions that complement its existing operations and market presence. Earlier in 2025, Cadence announced the acquisition of Industry Bancshares, a Texas-based bank with $4.4 billion in assets and 27 branches, further solidifying its position in key markets .

These strategic acquisitions reflect Cadence’s focus on scaling operations, diversifying its portfolio, and enhancing shareholder value. By targeting institutions with strong community ties and solid financial performance, Cadence aims to integrate operations smoothly while preserving the local characteristics that customers appreciate.

Market Reaction and Financial Performance

Following the announcement of the FCB Financial Corp. acquisition, Cadence Bank’s stock (NYSE: CADE) experienced a modest uptick, indicating investor confidence in the bank’s strategic direction. Over the past year, CADE shares have shown resilience, with a 4.17% increase, despite broader market volatility .

In its recent earnings report, Cadence Bank reported a positive performance, with earnings per share (EPS) of $0.70, surpassing analyst expectations. This financial strength positions the bank well to absorb integration costs and invest in growth initiatives post-merger .

Broader Trends in Regional Bank Consolidation

The Cadence-FCB merger is indicative of a larger trend in the U.S. banking industry, where regional banks are consolidating to achieve economies of scale, enhance technological capabilities, and navigate an increasingly complex regulatory environment. In the first quarter of 2025 alone, U.S. bank M&A activity reached a total deal value of $1.61 billion, the highest since 2021 .

Analysts suggest that such consolidations are driven by the need to remain competitive against larger national banks and fintech companies, as well as to meet evolving customer expectations for digital services and personalized banking experiences.

The completion of the merger between Cadence Bank and FCB Financial Corp. represents a strategic expansion into a dynamic market, reinforcing Cadence’s commitment to community banking while pursuing growth. As the bank integrates First Chatham Bank’s operations, it aims to maintain the personalized service that customers value, supported by the resources and capabilities of a larger institution.