Just four days after closing its first acquisition, the $764 million-asset Bancshares of Florida Inc. said it is scooping up another rival.
The Naples company announced plans Tuesday to buy the $324 million-asset Old Florida Bank in Fort Myers. The cash-and-stock deal, worth roughly $83 million, is expected to close in the first quarter.
Buying Old Florida would add four branches to Bancshares of Florida's seven-branch network, which covers Fort Lauderdale, Tampa, Boca Raton, Naples, and Lee County.
"It's a very strong complement to our footprint," said Michael McMullan, Bancshares of Florida's president and chief executive officer.
With the acquisition of Old Florida, "We will be establishing a visible presence as the premier community bank in Southwest Florida," Mr. McMullan said.
Once National City Corp. completes its recently announced deals to buy two Florida banks, more than 80% of the state's deposit market would be held by out-of-state companies, according to SNL Financial LC.
Mr. McMullan said that could help a home-grown bank like his attract people who prefer to do business with a local bank. The Old Florida acquisition makes Bancshares of Florida "more of a supercommunity bank with broad capabilities."
Lee Calfo, a director of research for Cohen Bros. & Co., said the acquisition would expand Bancshares of Florida's area of operations in the fast-growing region of southwest Florida and could make it more attractive to large institutions looking to expand in the state.
"It's a very vibrant acquisition market, and this certainly increases the value of Bank of Florida as a potential acquiree," Mr. Calfo said.
Mr. McMullan said Bancshares of Florida has no plans to sell. "We're focusing our energy on building the company," he said.
Wilson Smith, the director of financial research at Boenning & Scattergood Inc. in West Conshohocken, Pa., said Mr. McMullan, at age 51, has "still got about 10 years in him before he retires," and he has made it clear that he "wants to grow a homegrown bank and make it a player in the state."
However, Mr. Smith predicted Bancshares of Florida would make another acquisition in the state. Mr. Calfo agreed, saying a deal for a bank with $75 million to $400 million of assets is likely within the next 12 to 18 months.
Bancshares of Florida's corporate structure, which provides plenty of autonomy to its banking subsidiaries, makes it attractive to banks looking to sell, he said.
Last week Bancshares of Florida acquired the $93 million-asset Bristol Bank of Coral Gables for $21 million.
