Capital G to Merge With First Bermuda Group
Capital G Bank Limited and First Bermuda Group (FBG) today announced the signing of a Memorandum of Understanding outlining the preliminary terms of a merger between the two institutions, which they expect the merger to be completed within the next six weeks.
As of August 31, 2010 Capital G Bank held deposits in excess of $1.035 billion and a loan portfolio of $782 million. FBG has been in operation since 1990 and as of March 31, 2010, held over $206 million in deposits. The operating divisions of FBG include First Bermuda Savings & Loan and First Bermuda Securities.
The exact terms of the proposed merger are still being discussed by the parties and will be subject to various consents including the Bermuda Monetary Authority
The newly combined full service bank, positioned under the Capital G corporate identity, would create a privately held financial institution with deposits in excess of $1.2 billion, a loan portfolio of $950 million and a team of more than 200 employees.
Capital G has conducted an initial assessment of FBG and, in consultation with the Board of Directors has decided that a merger of the two institutions provides an ideal opportunity for Capital G to realize future growth opportunities as a leading full-service bank. The proposed merger will expand Capital G’s on-island network, grow its client base and accelerate its organic growth in Bermuda as well as provide new services to Capital G’s existing clients.
James Gibbons, Chairman of Capital G Bank Limited said, “We are very pleased to be able to merge with an institution such as FBG that has built a strong reputation in Bermuda over the last 20 years. FBG has a loyal client base that has trusted them to provide personalized savings, loan and wealth management solutions during that period of time. Capital G’s focus has always been on the financial needs and success of the residents of Bermuda and FBG has taken a similar approach, which makes this transaction particularly rewarding for both institutions.”
Ian Truran, President and CEO of Capital G Bank Limited added, “This marks an important milestone in Capital G’s history. The merger will provide full-service banking opportunities for the clients of both institutions. FBG customers will receive 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 continued by saying, “Capital G customers can look forward to a second branch located at FBG’s current location on the corner of Par-la-Ville Road and Church Street with access to retail brokerage services.”
Eugene Bean, Chairman of FBG, said, “As we celebrate our 20th anniversary, First Bermuda Group is pleased to be announcing today this proposed merger. Capital G is a well-established financial institution with a culture that is very similar to that of FBG’s. We also believe that the service provided by Capital G is commensurate with the service that our customers have come to expect so we believe that a merger with Capital G would be seamless to both our employees and customers.”
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