First Internet buying deposit-rich bank in Georgia

First Internet Bancorp in Fishers, Ind., has agreed to buy First Century Bancorp in Roswell, Ga.

The $4.3 billion-asset First Internet said in a press release Tuesday that it will pay $80 million in cash for the $408 million-asset First Century. The deal, which is expected to close in the first quarter, priced First Century at 135% of its tangible book value. 

First Century is a technology-driven bank that focuses on payments, tax product lending, sponsored card programs and homeowners association services. The company has $330 million of deposits and $32 million of loans. 

The acquisition “aligns with our strategy of operating unique and scalable businesses with nationwide platforms,” David Becker, First Internet’s chairman and CEO, said in the release. 

“It allows us to continue to diversify and grow our revenue streams in a capital efficient manner,” Becker added. “And, importantly, First Century’s success in the HOA business grants us access to a very attractive deposit base, with opportunity to expand.” 

First Internet said it expects the deal to be 21% accretive to its 2023 earnings per share. It should take the company about three years to earn back an expected 7% dilution to its tangible book value. 

First Internet plans to cut $1.8 million of annual noninterest expenses. It plans to incur $6.5 million of merger-related expenses. 

First Internet was advised by Keefe, Bruyette & Woods and SmithAmundsen. First Century was advised by Janney Montgomery Scott and Troutman Pepper.