Financial Education Resources

Fidelity Bank CEO shares the implications for banks, consumers and local communities.

Over the past year, Fidelity Bank underwent the exciting process of demutualization - transforming from a mutual organization into a publicly traded company owned by shareholders. 

As a financial institution that has been part of New Orleans for more than 116 years, this move marked a major shift in Fidelity Bank by offering shares to the people in the communities we serve. 

This process culminated in Fidelity Bank's initial public offering (IPO), joining the Nasdaq Capital Market this past October, which allowed us to sell shares to the public. During the IPO, Fidelity sold 19,837,500 shares of common stock, which includes 586,655 shares sold to the bank's Employee Stock Ownership Pan, for gross offering proceeds (before deducting offering expenses) of approximately $198.4 million based on the offering price of $10 per share.

IT'S GOOD FOR THE BANK.

Demutualization will allow us to position Fidelity Bank to compete more effectively in the increasingly competitive financial services sector. It has provided us with immediate access to capital markets with the goal of facilitating growth and innovation. This influx of funds can be used to enhance our services, improve our technological offerings, and expand our branch networks into new markets so that we can help more communities while building a more robust financial institution.

An additional focus for the bank will be to effectively manage shareholder interest while remaining committed to our community banking model. We believe it is fully possible to balance the interests of shareholders with those of the customers we serve throughout the great state of Louisiana.

IT'S GOOD FOR CONSUMERS.

What does all this mean for consumers?

With the new capital we now have access to, we will streamline and enhance existing products and service offerings with a specific priority to include enhanced digital banking options. 

In the end, clients will still have the experience of collaborating with a community-owned financial institution that is committed to investing in the community and enjoy local decision-making. Prior to the decision to demutualize, we were already expanding into new markets by opening new branches in Baton Rouge and Lafayette, and we plan even more growth in the future. 

We want to be Louisiana's go-to bank for small business loans, community development initiatives, and educational programs. With our investments, we hope to stimulate our local economies and foster entrepreneurship.

IT'S GOOD FOR THE COMMUNITY.

Social responsibility means a lot to Fidelity Bank, and we are always challenging ourselves to further enhance our connection with the community, whether philanthropically or through supporting local events like our POWER (Potential of Women Entrepreneurs Realized) program and our Community Partner program for nonprofits. We know these initiatives strengthen our role in the community and increase customer loyalty, benefiting both our bank and the local economy.

Bank demutualization is a long and complex process that represents a significant transformation in the financial landscape, with far-reaching implications for banks, consumers, and our local communities. Our commitment to be a safe and sound financial institution remains for our clients, the community, and now our shareholders. 

As we continue to grow and evolve, we are confident our continued emphasis on relationship development, community engagement, and client satisfaction will lead to our future success as the community bank of choice in the markets that we serve.

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Chris Ferris is the president and CEO of Fidelity Bank and NOLA Lending Group. He may be reached at [email protected]