The transaction, approved by the board of directors of both companies, expands Professional Bank’s Miami-based franchise into Palm Beach County.
Established in 2007 and headquartered in North Palm Beach, Florida, FirstCity currently operates one banking center in the Golden Bear Office Plaza. As of November 30, 2015, FirstCity had approximately $72 million in total assets, $52 million in net loans, $62 million in total deposits, and $6.9 million in total shareholder equity. Upon consummation of the merger, FirstCity will give Professional Bank its first location outside of the Miami-Dade market, which is consistent with its plans for expansion within the attractive Southeast Florida marketplace, providing opportunities for new loan and deposit growth. Upon completion of the acquisition, PHC will have approximately $382 million in assets, $337 million in total deposits and three full service banking offices.
Daniel R. Sheehan, Professional Bank’s Chairman and PHC’s Chairman and Chief Executive Officer said, "The FirstCity transaction is an important first step in our expansion plans throughout the tri-county area. The FirstCity board of directors along with their management team has done a great job navigating through a difficult community banking environment over the last few years, and we are pleased about the opportunities for both Professional Bank and FirstCity that this transaction offers. We believe this acquisition allows us to leverage our strong capital base and excess liquidity, giving rise to earnings accretion consistent with our business strategy. We are also excited about adding the FirstCity staff to the Professional Bank team to continue our strong commitment to service in Palm Beach County, with collective capital, liquidity and the resultant balance sheet remaining strong immediately after the merger."
Raul Valdes-Fauli, Professional Bank’s President and Chief Executive Officer said, "We look forward to welcoming the customers and employees of FirstCity to the Professional Bank and merging our shared goals of providing superior credit products and service to the communities which we collectively serve."
"FirstCity Bank is pleased to find a partner with a similar philosophy of providing excellent service to the business community. We look forward to this relationship and the expanded range of products that we will be able to offer to our current and future customers" said Reid Simmons, FirstCity’s Chairman of the Board. "We are also excited about the long term benefit to the shareholders of FirstCity Bank and appreciate their loyalty over the years."
PHC expects the merger to be immediately accretive to earnings per share after the integration of the companies and expects to continue to have strong capital ratios available for further growth. The merger is expected to be completed during the first half of 2016, after satisfaction of customary closing conditions, including regulatory approval and the approval by FirstCity shareholders.
