Two Coral Gables-based community banks announced a strategic merger on Monday.
The parent company of Coral Gables-based Professional Bank will acquire Marquis Bank, a move that will boost its asset size to over $1 billion.
Professional Holding Corp. (OTC: PFHD) didn’t disclose terms of the deal for Marquis Bank. The company said it would keep Marquis Bank’s Fort Lauderdale and Aventura branches, but its Coral Gables office would be impacted because Professional Bank has a location across the street.
The merger still needs the approval of shareholders and regulation agencies. It could close by the end of this year or early 2020.
“We have held Marquis Bank in high esteem for several years now and look forward to the partnership,” said Professional Bank’s Chairman & CEO, Daniel R. Sheehan. “They have a number of talented bankers on their team along with a great staff, both of which will be a natural fit within our culture. The combined institution will advance our plans for scale and profitability along with the implementation of certain technologies across this larger platform.”
As of June 30, Professional Bank had $890 million in assets and $758 million in deposits, compared to $680 million in assets and $560 million in deposits for Marquis Bank. Professional Bank earned $1.2 million in the first half of 2019, while Marquis Bank earned $3.7 million.
“We are truly excited to be partnering with Professional and believe now is the time to combine our franchises to create the premier community bank in South Florida,” said Javier J. Holtz, Marquis Bank’s chairman and CEO. “This is a tremendous opportunity for two high-performing banks with similar cultures to join together in this transformational merger.”
Marquis Bank has primarily focused on affluent customers and larger businesses, and hasn’t done much with with low-and moderate-income borrowers and small businesses, said Community Development Fund Advisors President Kenneth H. Thomas after evaluating its Community Reinvestment Act rating. The merger may be a positive development for South Florida if Marquis Bank takes this opportunity to expand its client base, he added.
Professional Bank worked with law firm Wachtell, Lipton, Rosen & Katz and financial advisor Stephens Inc. for the deal. Marquis Bank utilized Smith MacKinnon as legal advisor and Hovde Group as financial advisor.
If approved, the deal leaves South Florida with 37 community banks, down by about half from 10 years ago. Marquis Bank was founded in 2007 and Professional Bank opened in 2008.
Professional Bank has two offices in Coral Gables, one in Miaim-Dade County’s Dadeland and two in Palm Beach County. Marquis bank has offices in Coral Gables, Aventura and Fort Lauderdale.
Source: South Florida Business Journal
Article written by: Brian Bandell Senior Reporter, South Florida Business Journal