Major Corporate Financial Developments: GM Financial and Cadence Bank

In a significant update for the corporate financial landscape, GM Financial and Cadence Bank have announced their latest financial results and strategic moves. GM Financial reported a decline in net income for 2024, while Cadence Bank revealed plans to acquire FCB Financial Corp., marking a pivotal moment in the banking sector.

Key Takeaways

• GM Financial’s net income for 2024 was $1.9 billion, down from $2.2 billion in 2023.
• Cadence Bank is set to acquire FCB Financial Corp. for approximately $103.6 million.
• The merger will enhance Cadence Bank’s presence in the Savannah, Georgia market.

GM Financial’s Financial Performance

GM Financial, the wholly owned captive finance subsidiary of General Motors, reported its financial results for the year ended December 31, 2024. The company experienced a decrease in net income, attributed to a significant impairment charge.

• Net Income: $1.9 billion for 2024, down from $2.2 billion in 2023.
• Fourth Quarter Net Income: $215 million, compared to $532 million in Q4 2023.
• Retail Loan Originations: $37 billion for the year, a slight increase from $36 billion in 2023.
• Available Liquidity: $30.3 billion as of December 31, 2024.

The company recorded a $320 million impairment charge related to its equity investment, which significantly impacted its net income. Adjusted net income for the fourth quarter was $535 million, reflecting the company’s operational resilience despite challenges.

Cadence Bank’s Strategic Acquisition

In a bold move to expand its footprint, Cadence Bank announced a definitive merger agreement with FCB Financial Corp., the parent company of First Chatham Bank. This acquisition is expected to bolster Cadence’s operations in the growing Savannah market.

• Transaction Value: Approximately $103.6 million, consisting of 2.3 million shares of common stock and $23.1 million in cash.
• First Chatham Bank Overview: Founded in 2002, operates eight branches in the Greater Savannah area, with total assets of $590 million.
• Leadership Transition: Ken Farrell, President & CEO of First Chatham, will become Cadence Bank Division President for Southeast Georgia.

The merger has been unanimously approved by both companies’ boards and is anticipated to close in the third quarter of 2025, pending regulatory and shareholder approvals.

Implications for the Financial Sector

These developments highlight the dynamic nature of the financial sector, with companies adapting to market conditions and seeking growth through strategic initiatives. GM Financial’s performance reflects the challenges faced by automotive finance companies, while Cadence Bank’s acquisition strategy underscores the importance of regional expansion in a competitive banking landscape.

As these companies navigate their respective paths, stakeholders will be closely monitoring their progress and the broader implications for the industry.

Sources

• GM Financial Reports Full Year and Fourth Quarter 2024 Operating Results | Business Wire, Business Wire.
• Cadence Bank to Acquire FCB Financial Corp., PR Newswire.