Talladega-based FirstBanc of Alabama Inc. ("FBAI"), parent company of First Bank of Alabama, and Fort Payne-based FBDC Financial Corporation ("FBDC"), parent company of First Fidelity Bank, announced the signing of a definitive agreement whereby FBDC will be merged with and into FBAI; additionally, First Fidelity Bank will be merged with and into First Bank of Alabama as part of the transaction. FBAI will pay $20.5 million in the aggregate, or $52.56 per FBDC share, with 60% of the purchase price to be paid in FBAI common stock and 40% to be paid in cash. Legacy FBAI shareholders will own approximately 90% of the combined company and legacy FBDC shareholders will own roughly 10%. In connection with the transaction, one director of FBDC will join the boards of FBAI and First Bank of Alabama.

After adding First Fidelity Bank's locations in Fort Payne, Ider, Rainsville and Mentone, Ala., First Bank of Alabama will have total assets of approximately $1.3 billion and will operate 18 full-service locations across the State of Alabama.

Chad Jones, President and CEO of First Bank of Alabama, commented, "We could not be more excited to partner with First Fidelity Bank. This combination furthers our goal of being a strong, vibrant community bank in the state of Alabama and expands our footprint in East Central Alabama. We look forward to serving First Fidelity's markets in northeast Alabama and to welcoming its shareholders, employees and customers into the First Bank of Alabama family."

Steve Eberhart, President and CEO of First Fidelity Bank, added, "We are thrilled to join together with First Bank of Alabama. We have a 60-year history of serving our communities in Dekalb County and surrounding areas and know that our partnership with First Bank of Alabama will continue that legacy of service. We believe this transaction will be beneficial to our shareholders, employees and customers."

The transaction has been unanimously approved by the Board of Directors of both institutions but remains subject to customary conditions, including the approval of FBDC's shareholders and the receipt of required regulatory approvals. The transaction is expected to close no later than the second quarter of 2026.

Olsen Palmer LLC served as First Bank of Alabama's financial advisor while Compton Jones Dresher LLP served as legal advisor. First Fidelity Bank was served by Performance Trust Capital Partners, LLC as financial advisor and by Jones Walker LLP as legal advisor.