Plant City, Fla.-based Sunshine Bancorp Inc. ($523.1 million), the parent ofSunshine Bank, plansto acquireFBC Bancorp Inc., inan all-stock transaction valued at approximately $40 million.
Under the agreement, FBC's shareholders would receive 0.88of a share of Sunshine common stock in exchange for each FBC common share.Sunshine expects to realize 30% cost savings by reducing administrative andoperational redundancies and thinks that the transaction will be immediatelyaccretive to EPS.
On an aggregate basis, SNL calculates the deal value to be125.5% of book and 135.8% of tangible book, and 17.4x last-12-months earnings.The price is 15.09% of deposits and 13.24% of assets, and the tangible bookpremium-to-core deposits ratio is 4.09%.
In comparison, SNL valuations for bank and thrift targets inthe Southeast region between May 10, 2015, and May 10, 2016, averaged 143.79%of book, 145.87% of tangible book and had a median of 21.92x LTM earnings, onan aggregate basis.
Upon deal completion, FBC President and CEO Dana Kilbornewould serve as executive vice president of Sunshine Bancorp and co-presidentand chief banking officer of the bank. Additionally, five FBC current boardmembers will join the boards of Sunshine Bancorp and the bank, increasing thecompany's board size to 15 members.
The transaction will help Sunshine Bank expand along thegrowing I-4 corridor, and will add approximately $302 million in assets, $223million in loans and $265 million in deposits to the bank, creating a franchiseof approximately $800 million in assets and 18 banking locations across centralFlorida.
The deal is expected to close in the third or fourthquarter, subject to the approval of regulators and shareholders.
Keefe Bruyette & Woods Inc. was financial adviser toSunshine, and Foley & Lardner LLP was its legal adviser. Raymond James& Associates was financial adviser to FBC and Smith Mackinnon PA was itslegal adviser.
FBC Bancorp is the holding company of Orlando, Fla.-basedFlorida Bank ofCommerce.
Sunshine Bancorp Inc. will expand in Orange County, Fla., bythree branches to be ranked No. 23 with a 0.27% share of the market's approximately$28.45 billion in total deposits; it will enter Brevard County, Fla., with twobranches to be ranked No. 12 with a 1.45% share of the market's approximately$7.70 billion in total deposits; it will enter Osceola County, Fla., with onebranch to be ranked No. 15 with a 0.77% share of the market's approximately$2.68 billion in total deposits; and it will also enter Seminole County, Fla.,with one branch to be ranked No. 25 with a 0.47% share of the market's approximately$7.12 billion in total deposits, as shown by SNL data.