Newly formed company West Florida Banking Corp. is buying Clearwater, Fla.-based Flagship Community Bank, the (St. Petersburg, Fla.) Catalyst reported.
West Florida Banking will pay $14.57 per Flagship share in cash and stock, with Flagship shareholders choosing to receive stock getting 1.457 West Florida Banking shares for each share held.
The $10 per-share stock consideration is the per-share price of the common stock that West Florida Banking will issue in a private placement offering that it is planning to launch.
The cash-and-stock transaction is slated for completion before the end of 2019.
S&P Global Market Intelligence valuations for bank and thrift targets in the Southeast region between May 30, 2018, and May 30, 2019, averaged 166.66% of book, 177.21% of tangible book and had a median of 21.42x last-12-months earnings, on an aggregate basis.
Flagship has assets of $122 million, according to the report.
Bob McGivney is the CEO and vice chairman of West Florida Banking, while James Nelson will be the president and COO. Rob Shaw will serve as executive vice president.
McGivney was chairman and CEO and Nelson was president and COO of Jefferson Bank of Florida, while Shaw was with USAmeriBank. Larger institutions had acquired Jefferson Bank and USAmeriBank.
Wikle Commercial Real Estate Services owner Paul Wikle will be the chairman of the West Florida Banking board, which will also include David Brandon, Ron Hockman, Mark Klein, Ken Marks and Joe Oliveri. Wikle, Brandon, Hockman and Klein were former directors of Jefferson Bank.
Flagship Community Bank operates two branches in Pinellas County, Fla., ranked No. 26 with a 0.25% share of approximately $44.65 billion in total market deposits, according to S&P Global Market Intelligence data.
The law firm of Igler & Pearlman represented West Florida Banking in the transaction. Monroe Securities acted as Flagship's financial adviser, with Ed Dougherty PA serving as legal counsel.