Atlantic Coast Financial Corporation has inked a definitive merger agreement with Florida’s Bond Street Holdings, in a bid to expand in the Jacksonville area as well as the Southeast Georgia markets.
Based on the terms of the agreement, Atlantic Coast Bank will integrate with Florida Community Bank, a subsidiary of Bond Street.
Commenting on the deal, Florida Community Bank president and CEO Kent Ellert said that the deal will strengthen its Florida footprint significantly and helps deliver a considerable groundwork to create a commercial lending team to incite future growth.
Atlantic Coast Financial’s stockholders will receive $5 per share in cash for each common share owned, which represents a premium of nearly 49% to the its average stock price of $3.36 over the 10-day period ended on 25 February 2013.
Pending receipt of regulatory and the company stockholders approvals, the transaction is likely to complete by the end of the second quarter of 2013.
Following completion of the transaction, Florida Community Bank will have nearly $4bn in assets and 53 branches in both Florida coasts and in Southeast Georgia.
Atlantic Coast Bank manages 12 branches in the northeastern Florida and southeastern Georgia markets and delivers banking services to its customers.