Bank merger won't affect clients for 6 months

Account holders will retain their financial products and accounts until the company restructures, with an anticipated completion date of July 4.

New products will become available for FBG customers under the Capital G brand.

But until then, FBG bank rates will be consistent with those of Capital G.

FBG’s premises at the corner of Par-la-Ville Road and Church Street will also become a second Capital G branch.

Reviews

Ian Truran, president and CEO of Capital G Bank Ltd. and Capital G Trust Ltd., confirmed there would be no job losses.

FBG’s 30 employees are undergoing reviews and assessments ready for new roles in the merged institution.

Mr. Truran said: “As part of our due diligence we have reviewed job descriptions and functions and have determined an appropriate organizational structure.

“The senior management lines of First Bermuda Group will report into the senior lines of Capital G group but all of the staff of First Bermuda Group will continue. Staffing remains the same.

“A successful transition can only be achieved by capitalizing on the talent already available at FBG.

“We look forward to welcoming all FBG clients and employees to the Capital G family.

 “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 said Capital G had eyed FBG’s retail brokerage division as an attractive opportunity for expansion.

Opportunity

He added: “The amalgamation creates a tremendous opportunity for the Capital G group and the community.”

As for the sale of stock by FBG shareholders, this had not prompted any resistance, Mr. Truran said, adding: “I’ve had no negative feedback at all at this stage, only positive.” Talks first began between the two companies in August, after a potential merger between FBG and Bermuda Commercial Bank stalled.

A Memorandum of Understanding was signed on October 7 but the merger awaited approval by the Bermuda Monetary Authority and Ministry of Finance.

On December 21, both companies then signed an amalgamation agreement.

FBG shareholders approved it at their AGM on December 30, with the official merger announced yesterday.

Process

Mr. Truran said: “Over the next six months we will start to introduce Capital G branding into the First Bermuda Group.

“Our goal is to complete the amalgamation process by July 4.”

He added there would be no rebranding of Capital G Bank Ltd, saying: “We’re very happy with the branding as it is.”

The merger creates Bermuda’s largest privately held full service bank and deposit taking company, with combined deposits of $1.4 billion, a loan portfolio of $970 million and a team of more than 200 employees.

Eugene Bean, former FBG chairman, 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 clients will receive communications in the next month about the merger but information is also available online at www.capital-g.com.