First Bancshares to acquire First Florida Bancorp for $85m

First Bancshares acquisition of First Florida Bancorp :  As per the latest Bank acquisition news, The First Bancshares, the holding company for The First, A National Banking Association has agreed to acquire First Florida Bancorp (FFB), the parent company of First Florida Bank in a cash-cum-stock deal worth around $85 million.

As per the terms of the First Bancshares acquisition of First Florida Bancorp agreement and plan of merger signed by the parties, First Florida Bancorp will be merged with and into the Mississippi-based First Bancshares.

Terms of First Bancshares acquisition of First Florida Bancorp

Following the merger, shareholders of First Florida Bancorp will exchange each of their shares for $5.20 in cash and 0.257 of First Bancshares’ shares.

Commenting on First Bancshares acquisition of First Florida Bancorp, Frank B. Burge -Chairman of the Board and CEO of First Florida Bancorp, said: “We are excited to join The First Bancshares team. We believe that combining our two institutions will expand our capabilities to better serve our clients and create significant value for our shareholders.

“This partnership brings together two companies with similar cultures and business models. We look forward to the additional resources provided by this combination and the advantages it will provide for further growth opportunities.”

First Bancshares acquisition of First Florida Bancorp. Image by Free-Photos from Pixabay.

As of 30 June 2019, First Florida Bancorp had nearly $451 million in consolidated assets, $387 million in deposits, $255 million in loans, and consolidated stockholders’ equity of $48 million.

First Florida Bank has operations across Destin, Crestview, Fort Walton, and Panama City, all in Florida, by means of six full-service offices and a loan production office.

The First, A National Banking Association, on the other hand, which was established in 1996, has operations across Mississippi, Louisiana, Florida, Alabama, and Georgia.

First Bancshares acquisition of First Florida Bancorp is expected to advance the regional expansion plan of the former while giving it more market share in Florida.

Following the completion of First Bancshares acquisition of First Florida Bancorp, the combined bank holding company will have nearly $4.0 billion in total assets,  $2.6 billion in total loans, and $3.2 billion in total deposits. The enlarged bank holding company will have 78 locations across Mississippi, Louisiana, Florida, Alabama, and Georgia.

Milton Ray Cole (Hoppy) – President and CEO of First Bancshares and The First, A National Banking Association, commenting on First Bancshares acquisition of First Florida Bancorp, said: “We are excited about our merger with First Florida Bancorp announced today. First Florida is a well-respected, premier financial institution and we are thrilled to be joining forces with Frank Burge and his team.

“Our banks share a common goal of continued growth by delivering exceptional service to our clients and providing superior returns for our shareholders. Our partnership with First Florida will substantially improve our market share in Florida and further our strategic vision of building a high performing regional community bank.”

Janney Montgomery Scott is the financial advisor to First Bancshares, while Alston & Bird is the legal advisor for the transaction. For First Florida Bancorp, Hovde Group is the financial advisor, while Jones Day is the legal advisor for the proposed transaction.

The boards of directors of both First Bancshares and First Florida Bancorp have approved the agreement and plan of merger.

First Bancshares acquisition of First Florida Bancorp, which will be subject to regulatory approvals and approval by the shareholders of the Florida-based bank holding company, is expected to be wrapped up in the fourth quarter of 2019.