First National Bankers Bankshares in Baton Rouge, La., has agreed to buy Independent Bankers' Bank of Florida for $1.9 million.
The holding company of Independent filed for Chapter 11 bankruptcy on Monday and plans to sell the bank to the $780 million-asset First National, Jim McKillop, the president and chief executive of the holding company, said in a letter to shareholders Thursday.
Independent has assets of $143 million and is based in Lake Mary, Fla.
"Despite the best efforts at the holding company to restructure costs, tamp down nonperforming assets and raise additional capital, it has been and remains a very difficult market, and we have been unable to turn things around," McKillop said in the letter.
Shannon Kirby, vice president for administration at First National Bankers, confirmed the existence of the deal Thursday but said further questions had to be directed to President and Chief Executive Joseph Quinlen, who was not immediately available.
The purchase price includes $240,000 in cash, stock consideration valued at $760,000 and the cancellation of $900,000 in debt, according to the investment bank Hovde Group, which said in a note on its website that it had advised the seller.
The transaction is expected to close in August or early September, McKillop's letter said.