First Federal Bancorp, the holding company of First Federal Bank of Florida, signed a merger agreement with Coastal Banking to acquire the Fernandina Beach, FL bank.

Under the merger terms, FFBI will pay $21.50 per share in cash for each CBC common share and stock option outstanding in a transaction valued at $83.2 million plus the repayment of $8.2 million of debt.

CBC currently has full-service bank branches in Florida and South Carolina, with residential lending offices and small business lending offices in Florida, Georgia, South Carolina, North Carolina, Illinois, Ohio, Tennessee and Maryland. The agreement would expand First Federal’s bank branch presence to Ocala, FL and South Carolina, while increasing its influence in Nassau County. First Federal would also gain residential, SBA, and USDA lending offices across Florida and in multiple states.

“We are delighted to announce this partnership with CBC National Bank,” said Keith Leibfried, president and CEO of First Federal. “CBC has built a strong reputation in the markets they serve and we look forward to continuing that tradition. We share common values and traits with CBC and want to extend a warm welcome to CBC employees, customers and the communities they serve.”

Both boards of directors approved the agreement. The merger now awaits approval from CBCO shareholders and regulators, along with the customary closing conditions, with an expected close late in Q1/18.

Hovde Group served as financial advisor, and Smith Mackinnon and Reznicsek, Shaw, Shaffer & Jeans provided legal counsel to FFBI. The Burke Group served as financial advisor, and Bryan Cave served as legal counsel to CBCO.