Facebank International, an international banking entity based in Puerto Rico, is seeking Bank Holding Company status as part of a plan to buy and recapitalize Eastern National Bank in Miami.
Facebank, which also operates a mortgage company Florida Home Trust, also applied with the Federal Deposit Insurance Corp. to buy the $100.5 million-asset Eastern. Financial terms have not been disclosed.
DBRS noted when it placed Facebank’s credit ratings under review, noted Eastern’s recent financial struggles.
“Over the past several years, ENB has faced financial challenges and, as a result, has downsized its loan portfolio to meet regulatory capital requirements,” DBRS noted. “Consequently, the bank has become structurally unprofitable and requires additional capital.”
After the merger, the combined bank is expected to have more than $600 million in assets, including $316 million in loans funded by about $535 million in deposits.