Stonegate to Buy Insignia Bank in Fla. for $37M
Stonegate Bank in Pompano Beach, Fla., has agreed to buy Insignia Bank in Sarasota, Fla.
The $2.8 billion-asset Stonegate said in a press release Wednesday that it will pay $36.5 million, or $13.52 a share, in stock for the $248 million-asset Insignia. The deal, which is expected to close in the first quarter, values Insignia at 148% of its tangible book value.
Insignia has two branches, a pair of loan production offices, $188 million in loans and $210 million in deposits. The deal should give Stonegate the biggest market share in Sarasota County, with 3.3% of total deposits, Dave Seleski, Stonegate's president and chief executive, said in the release.
Stonegate said it expects the transaction to be accretive to its earnings per share and slightly dilutive to its tangible book value per share.
Keefe, Bruyette & Woods and Stonegate Bank. Gunster, Yoakley & Stewart advised Stonegate. Hovde Group and Smith Mackinnon advised Insignia.
Seleski had teased out last month that Stonegate was close to announcing an acquisition.
"Right now, we're number one or will be number one in the closed region in the Broward County," Seleski said during a conference call to discuss second-quarter results. "We would like to be number one or number two in some of the other markets that we're in as well. … We feel fairly confident we're going to get something done."