The Bank Slate


United Community in S.C. set to buy First Miami

United Community Banks in Greenville, S.C., has agreed to buy First Miami Bancorp in South Miami, Fla.


The $24 billion-asset United said in a press release that it will pay about $115.9 million in stock for the $1 billion-asset First Miami. The deal, which is expected to close in the third quarter, priced First Miami at 162% of its tangible book value.


First Miami shareholders will also receive a special cash dividend at closing from net proceeds of the sale of certain investment securities held by First Miami.


First Miami has three branches, $594 million of loans and $867 million of deposits. It also has about $310 million of assets under management.


“I know firsthand the strength and vibrancy of the Miami market from my past career experience,” Lynn Harton, United’s chairman, president and CEO, said in the release. “I look forward to working with the leadership team of FNBSM to continue to grow in one of the most-attractive metropolitan areas in the country.”


United said it expects the deal to be about 3% accretive to its 2024 earnings per share, excluding transaction costs. The company said any dilution to its tangible book value should be manageable.


United plans to cut about 30% of First Miami’s annual noninterest expenses, or roughly $7 million. It expects to incur about $10.6 million of merger-related expenses.


Stephens, Morgan Stanley and Wachtell, Lipton, Rosen & Katz advised United. D.A. Davidson; Barack Ferrazzano Kirschbaum & Nagelberg; and Gozdecki, Del Giudice, Americus, Farkas & Brocato advised First Miami.

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