Old Florida National Bank of Orlando and Mercantile Capital Corp. of Altamonte Springs, Fla., announced a deal in which Mercantile would become a subsidiary of Old Florida.
Mercantile, a SBA-504 lender, will become part of Old Florida, which has assets of $375 million and eight branches. The combined institution would have assets of $400 million. Mercantile has provided commercial loans in 30 states and Puerto Rico for more than $513 million in total project costs since it was started in late 2002.
"The merger substantially extends Old Florida's capacity to engage in commercial lending," Randy Burden, the company's chairman, said in the Aug. 25 announcement.
The all-stock deal is expected to be completed in the first quarter of 2011.