The acquisition is expected to increase Stonegate’s total assets to around $2.7bn.
Headquartered in Davie, Florida, Regent Bank is a state chartered bank operating five branches in the state. RBI is the bank holding company for Regent Bank.
RBI had total assets of $363m, total loans of $274m and total deposits of $293m as of 31 December 2015.
Stonegate Bank president and CEO Dave Seleski said: "This acquisition significantly expands our deposit market share in Broward County to approximately 2.2%, resulting in Stonegate having the largest deposit market share of any community bank in Broward County.
"In addition, we increase our branch network to 3 branches in Palm Beach County with close to $350m in total deposits. After consummation of the merger, Stonegate’s total combined deposits in south east Florida are expected to exceed $1.5bn. The combination will give Stonegate more leverage to deliver products to our target market in southeast Florida."
The transaction is the ninth acquisition for Stonegate since 2009 and it is expected to be completed in the third quarter this year.
Separately, Stonegate reported that its net income fell to $6.7m in the first quarter of this year, compared to $7.3m in the last quarter of 2015.
Its total loans increased by $28.6m to $1.89bn in the March quarter, due to net organic loan growth during the quarter. The bank’s net interest income dropped $689,000 to $21.1m in the quarter.
"While earning assets grew from the fourth quarter of 2015 to the first quarter of 2016, the decrease in net interest income from the fourth quarter of 2015 was a result of the decrease in accretable discounts and nonaccretable discounts recognized in the first quarter of 2016 as compared to the fourth quarter of 2015," the bank said in a statement.
The bank saw its deposits increasing to $2.09bn in the January-March period, from $2.02bn recorded for the December quarter last year. It increased the provisions to cover bad loans by $345,000 to $18.5m in the quarter.
Image: Stonegate Bank has agreed to acquire the operations of Regent Bancorp, including its subsidiary, Regent Bank. Photo: courtesy of Chaiwat/FreeDigitalPhotos.net.
