Valley National Bancorp in Wayne, N.J., has agreed to buy CNLBancshares in Orlando, Fla.
The $19 billion-asset Valley said in a press release Wednesday that it will pay $207 million in stock for the $1.4 billion-asset parent of CNLBank. The transaction is expected to close in the fourth quarter and be accretive to Valley's earnings within 12 months of closing.
The deal comes roughly a year after Valley entered Florida by acquiring 1st United Bancorp for $312 million. CNLBancshares will give Valley another $833 million in loans, $1.1 billion in deposits and 16 branches.
"The proposed acquisition of CNLBancshares further demonstrates our commitment to prudently deploy our resources to supplement the recent organic growth in our Florida market," Gerald Lipkin, Valley's chairman, president and chief executive, said in the release. "Our outlook for Florida remains very positive and we are focused on supporting growth in that footprint through other acquisitions or de novo opportunities."
The deal values CNLBancshares at 155% of its tangible book value. Valley said it expects to earn back the deal's tangible book value dilution in less than five years.
CNLBancshares was advised by Hovde Group and Smith Mackinnon. Valley was advised by MG Advisors and Day Pitney.