Sunshine Bancorp in Plant City, Fla., has agreed to buy FBC Bancorp in Orlando, Fla.
The $523 million-asset Sunshine said in a press release Tuesday that it will pay $40 million, or $12.41 a share, in stock for the $302 million-asset parent of Florida Bank of Commerce. The deal, which is expected to close in the third or fourth quarter, values FBC at 128% of its tangible book value.
Dana Kilborne, FBC's president and chief executive, will become co-president of Sunshine's bank, and all of FBC's directors will join Sunshine's board.
"We are excited to expand on our presence in the Orlando metro market with a strong partner who has a proven track record of high performance," Andrew Samuel, Sunshine's president and chief executive, said in the release.
Sunshine said it expects to cut costs by 30% through the reduction of administrative and operational redundancies. Sunshine added that it expects the transaction will be immediately and "significantly accretive" to earnings per share. It should take less than three years for Sunshine to earn back any dilution to its own tangible book value.
Keefe, Bruyette & Woods and Foley & Lardner advised Sunshine. Raymond James and Smith Mackinnon advised FBC.