By Joseph M. Morgan
Fort Payne, Ala.—Two of North Alabama’s leading banking institutions completed the final phases of a merger recently when First State Bank of DeKalb County put the finishing touches on an acquisition-merger with First Bank of the South to become the largest locally owned bank in DeKalb County.
First State Bank of DeKalb County announced in April that an agreement had been reached for the company to acquire First Bank of the South and that the two would plan to merge following the acquisition. First State Bank recently made good on that promise, closing the acquisition and completing the final phases of the merger on July 1.
Prior to the merger, First State Bank of DeKalb County operated from two locations in Fort Payne. Since acquiring First Bank of the South, First State Bank has expanded its footprint in North Alabama with the addition of new branches in Rainsville and Henagar in DeKalb County and Grant in Marshall County.
“The merging of First State Bank of DeKalb County and First Bank of the South provides an outstanding opportunity for the customers and shareholders of both banks,” David Henderson, First State Bank of DeKalb County President and CEO said. “We have a strong commitment to our local community, and take pride in knowing all of our customers by name.”
Henderson said going into the merger First Bank of the South had estimated assets of around $80 million with about $75 million in total deposits. The number constantly fluctuates depending on the market, but following the merger First State Bank of DeKalb County now has approximately $175 - $180 million in total assets and about $160 million in deposits.
Henderson spent 18 years with First Bank of the South and served as the bank’s president for the four years prior to beginning his 16-year tenure as First State Bank of DeKalb County’s president and CEO. Henderson said the time he spent working with First Bank of the South provides a significant advantage to the organization as they work out the kinks following the merger.
Having the established relationships with several of the senior staffers at First Bank of the South also gives Henderson peace of mind knowing that there were already knowledgeable, competent executives in place prior to the merger, and allowing virtually all of the employees at First Bank of the South to keep their jobs after the merger and continue business as usual and allow for a seamless transition.
Henderson said that the merger is a win-win for the customers of both banks.
“Over the past several months our transition team and board of directors has taken the time to look at the policies, procedures and practices from both banks to see what works and how we can best serve our customers,” Henderson said. “We took the very best in terms of how we do business from each bank and the banking experience for every customer will improve.”
Henderson said some of the changes include some new options for former First Bank of the South customers that include a new website, improved online banking, real-time account updates and improved rates across the board.
Established in 1981, First State Bank of DeKalb County, Inc. was established by a local board of directors and is locally owned and operated. Henderson said this gives the bank a distinct advantage of having the flexibility to meet the needs the bank’s customers in a prompt manner without seeking “out of town” approval.
“Our Board of Directors, Officers and Employees take pride in the fact that our banking decisions are decisions made right here at home by a staff made up of the neighbors and friends of our customers who are aware of the needs of our area,” Henderson said. “We look forward to providing all our customers with improved products, technology offerings, and service.”
