First Bermuda Group & Capital G Merge
Capital G Bank Limited and First Bermuda Group Ltd. today [Jan 4] announced the formal amalgamation of the two Bermuda financial institutions. The agreement to amalgamate was signed on December 21, 2010 and subsequently approved by the FBG shareholders on December 30, 2010, creating Bermuda’s largest privately-held full service bank and deposit taking company with combined deposits in excess of $1.4 billion, a loan portfolio of $970 million and a team of more than 200 employees.
Capital G has been in negotiations with FBG since signing a Memorandum of Understanding on October 7, 2010. Since that time Capital G has conducted a comprehensive assessment of FBG including a review of its loan portfolio, product and service offering and its operational infrastructure.
Ian Truran, president and CEO of Capital G Bank Limited and Capital G Trust Limited said: “Capital G’s philosophy has always been one that is focused on the life-long success of residents of the Bermuda community. As a family-owned bank our mission is to build relationships with our clients. Over the years, FBG has established a similar position in the Bermuda deposit taking market by building a strong client base.”
Mr. Truran continued by saying, “We look forward to welcoming all FBG clients and employees to the Capital G family.”
“The real work begins now. We have already started aligning ourselves more closely together by introducing consistent rates across the two institutions while we continue to look at the operational infrastructure of FBG with a view of bringing it in line with Capital G in the very near future,” continued Mr. Truran.
The new combined institution will have assets in excess of $1.4 billion Dollars with healthy capital levels and an experienced and talented management team.
This year will be a transition year. In the short term, FBG will operate under the management of Capital G, as a wholly owned subsidiary of Capital G Bank Limited. However, all client transactions will remain independent of each other while work is done behind the scenes to integrate FBG fully into Capital G.
Mr. Truran continued by saying that, “One of the most important aspects of the amalgamation is the retention of the majority of the FBG workforce. A successful transition can only be achieved by capitalizing on the talent already available at FBG. Since announcing the proposed amalgamation both teams have been in discussions to understand the operations of FBG, its employee responsibilities and how their individual roles will play a vital role in the successful amalgamation.”
Mr. Truran added, “This marks an important milestone in Capital G’s history. The merger will provide access to full-service banking opportunities for the clients of both institutions. FBG customers will have access to all of the benefits of the Capital G network including a variety of savings and investment options, expanded credit facilities including credit and debit cards, commercial and private banking and estate and trust services.”
Mr. Truran concluded by saying, “Capital G customers can look forward to a second branch planned to be at FBG’s current location on the corner of Par-la-Ville Road and Church Street with access to retail brokerage services.”
James Gibbons, Chairman of Capital G Bank Limited added, “The amalgamation with FBG demonstrates our commitment to grow our financial services company in Bermuda. As a group we are committed to the Bermuda community and the success of all that work and live here.”
Eugene Bean, former Chairman of First Bermuda Group, said, “We are both proud and excited to join the Capital G family who share the same commitment to providing outstanding service to their customers and a good working environment for their staff.”
Capital G and FBG appreciate that clients will have questions with regards to the amalgamation. Communications will be sent to all clients over the next month advising them of the amalgamation and its benefits to them as clients of Capital G and FBG.
Clients may also visit capital-g.com to view the Frequently Asked Questions (FAQs) for more information about the amalgamation.
The amalgamation has received formal approval from the Bermuda Monetary Authority.
Pictured below (from left) are: Michael Schroter, former director First Bermuda Group; Jonathan Clipper, former CEO First Bermuda Group; Ian Truran, president & CEO, Capital G Bank Limited and Capital G Trust Limited; John Cunningham, former director First Bermuda Group; Jeff Conyers, former president First Bermuda Group; James Gibbons, chairman, Capital G Bank Limited; John Kephart, president and CEO Capital G Limited and David Pugh, former Director & Chairman, Executive Committee First Bermuda Group.
