Valley National Bancorp, parent of Valley National Bank, is paying $207 million for an Orlando, Florida-based bank, it announced Wednesday.Valley is paying 0.75 of a share of common stock for each share in CNLBancshares Inc., parent of CNLBank, it said in a news release. The deal will help Wayne-based Valley grow in Florida, moving it into two new markets and bolstering its presence in two others, it said.
“Approximately one year ago, we announced our initial entrée into Florida with the acquisition of 1st United Bancorp Inc.,” Gerald H. Lipkin, Valley’s chairman, CEO and president, said in a prepared statement. “Since that time, (Florida President) Rudy Schupp and his management team have exceeded all of our pro forma growth expectations.
“The proposed acquisition of CNLBancshares further demonstrates our commitment to prudently deploy our resources to supplement the recent organic growth in our Florida market. Our outlook for Florida remains very positive and we are focused on supporting growth in that footprint through other acquisitions or De Novo opportunities.”
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CNLBancshares has approximately $1.4 billion in assets, $833 million in loans and $1.1 billion in deposits — and its network includes 16 branches. The combined company would have approximately $20.4 billion in assets, $14.6 billion in loans and $15.3 billion in deposits, and 240 branches in three states, Valley added.
“We continue to operate in what we believe to be three of the strongest markets along the East Coast, with a meaningful presence in New Jersey, New York and Florida,” Lipkin said.
The share exchange is subject to adjustment if Valley’s price falls below $8.80 or rises above $10.13 prior to the close of the transaction. It closed at $9.67 on Tuesday.
“With this merger, we add a well-positioned institution located in regions of Florida with very strong demographics that should serve as an excellent foundation for future growth opportunities,” Schupp, who is also a Valley executive vice president, said in a statement. “The addition of CNLBank enables our franchise to maintain and even strengthen Valley’s value proposition throughout the region.”
Valley said CNLBank’s management will join the bank in order to help lead continued Florida development efforts.
Both banks’ boards of directors have approved the transaction, which is expected to close in the fourth quarter, pending customary approvals and closing conditions.
Valley was advised by MG Advisors Inc. and the law firm of Day Pitney LLP. CNLBancshares was advised by Hovde Group LLC and the law firm of Smith Mackinnon PA.
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