Florida businesses that want to expand their operations into new locales often find that merging with or acquiring another company can facilitate that. These mergers and acquisitions are seen across all industry segments and among businesses of varying sizes. The financial services industry is no exception to this.
Earlier in 2015, Professional Bank of Coral Gables successfully approved and completed the raising of $15 million in capital. With its eyes clearly positioned on growth, the bank began looking for other institutions to acquire. Its parent company, Professional Holding Group, held discussions with a Palm Beach Gardens bank. It was recently announced that Professional Holding Group will pay close to seven million in order to acquire the FirstCity Bank of Commerce in Palm Beach Gardens.
These two banks together will expand the reach of Professional Bank. FirstCity Bank of Commerce is a much smaller operation than Professional Bank. The former was ranked number 52 out of 53 in the list of South Florida banks based upon size. In contrast, Professional Bank was ranked number 35. The acquisition needs to be approved via a FirstCity Bank of Commerce shareholder vote. The shareholders will also vote on the method of payment which can be stocks, cash or a combination of both. Both banks’ board of directors have voted on and approved the acquisition. If approved, the transaction is expected to be completed by June of 2016 at the latest.
Business growth strategies can benefit from a varied approach. Mergers and acquisitions can be friendly but can also be adversarial. Talking to experienced attorneys before embarking on such a venture can be helpful.
Source: South Florida Business Journal, “BREAKING: Coral Gables-based bank to acquire Palm Beach County competitor,” Nina Lincoff, December 18, 2015