First NBC Bank has signed an agreement with the Federal Deposit Insurance (FDIC) to purchase certain assets and assume liabilities of First National Bank of Crestview.
As part of the transaction, First NBC Bank will assume all of the outstanding deposits, including all uninsured deposits of First National Bank of Crestview which, as of 30 September 2014, totaled about $78.6m.
Following the acquisition, First NBC Bank will have about $3bn in deposits and would be able to expand its geographic footprint into the state of Florida.
First NBC Bank, which is said to have received all required regulatory approvals to complete the transaction, will continue to remain ‘well-capitalized’ under applicable regulatory capital standards following the acquisition, with a tier 1 leverage capital ratio of about 11.01%.
First National Bank of Crestview reported about $79.7m in total assets and $78.6m in total deposits as of 30 September 2014.
To assume First National Bank of Crestview’s deposits, First NBC Bank also agreed to purchase about $62m of the failed bank’s assets.
The assets comprise the bank’s performing loans, substantially all of its investment securities portfolio and its three banking facilities.
FDIC will retain the remaining assets.
First NBC chief executive officer and president Ashton Ryan Jr said: "We currently provide financial services to numerous banking customers who reside or do business in the Florida Panhandle, and the acquisition enables us to better serve the needs of those customers, as well as the many others within the market looking for a more customer-centric financial services alternative."
"The acquisition marks First NBC’s entry into the Florida market, a market the Board considers to be extremely attractive due to its size, significant tourism base and historical affiliation with the New Orleans market."