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Florida's FCB to buy Floridian Community

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Florida's FCB to buy Floridian Community

In Florida, Weston-based FCB Financial Holdings Inc. is acquiring Floridian Community Holdings Inc. of Davie in an all-stock deal valued at approximately $88.1 million.

Each Floridian Community share will be exchanged for 0.4584 share of FCB class A common stock. Options for Floridian Community common stock will be cashed out upon the deal's completion, for approximately $4 million.

SNL calculates the deal value to be 184.8% of book and tangible book and 34.9x earnings, on an aggregate basis. It is also 16.32% of assets and 21.98% of deposits. The premium to tangible book amounts to 16.21% of core deposits.

For comparison, SNL valuations for bank and thrift targets in the Southeast between Nov. 27, 2016, and Nov. 27, 2017, averaged 148.80% of book, 150.36% of tangible book and had a median of 23.12x last-12-months earnings, on an aggregate basis.

Floridian Community's Floridian Community Bank Inc. had $545.1 million in assets, as of Sept. 30. It will merge into FCB's Florida Community Bank NA, which had $10.04 billion in assets. FCB estimates $4.3 billion in pro forma deposits in Southeastern Florida. FCB will expand in Palm Beach County, Fla., by four branches to be ranked No. 10 with a 2.8% share of approximately $50.63 billion in total market deposits and will expand in Broward County, Fla., by one branch to be ranked eighth with a 3.43% share of approximately $53.24 billion in total market deposits.

The deal, pending regulatory and shareholder approvals, is expected to close in the second quarter of 2018. FCB expects to record integration-related costs of $8 million to $10 million and tangible book value dilution of less than 1%. Using the crossover method, it calculates the dilution will be earned back in 2.75 years.

Annual cost saves, pretax, will amount to 45% of Floridian Community's run-rate expenses in 2018. The internal rate of return is projected to be more than 25%. The deal is expected to be 1% accretive to 2018 EPS and 2% accretive to 2019 EPS.

If the deal is terminated, Floridian Community will pay a $3.1 million termination fee under certain circumstances.

Evercore served as FCB's financial adviser in the transaction; Sullivan & Cromwell LLP and Kramer Levin Naftalis & Frankel LLP acted as legal counsel. For Floridian Community, it was Hovde Group LLC, with Nick Barbarine as lead banker, and Igler and Pearlman PA.

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