First Citizens Bank & Trust agreed to acquire Biscayne Bancshares and its subsidiary, Biscayne Bank.
The agreement provides for the acquisition of Coconut Grove, Fla.-based Biscayne Bancshares by First Citizens Bank, which is headquartered in Raleigh, N.C. The announcement was made jointly by Frank B. Holding Jr., chairman and chief executive officer of First Citizens Bank, and Lorie Yarchin, chief executive officer of Biscayne Bancshares.
Under the terms of the agreement, cash consideration of $25.05 per share will be paid to the shareholders of Biscayne Bancshares for each share of its common stock.
The agreement has been approved by the boards of directors of both companies, with the transaction expected to close during the first or second quarter of 2019, subject to the receipt of regulatory approvals, the approval of Biscayne Bancshares’ shareholders and other customary closing conditions.
Opened in 2005, Biscayne Bank is a state-chartered, full-service commercial bank with four offices, two in Coconut Grove, one in Doral and one in South Miami. As of September 30, 2018, it reported $990 million in consolidated assets, $746 million in deposits and $834 million in loans.
Customers will bank as they normally do at their existing branches, which will become part of First Citizens upon the completion of the merger.
Frank B. Holding Jr., chairman and CEO of First Citizens, said, “First Citizens has served individuals and businesses in Florida for 20 years, and this agreement will complement our growing presence in the state. Joining together with a bank like Biscayne — that also has a deep commitment to service excellence — will also allow us to enhance our banking efforts and create value for shareholders and customers alike.”
Lorie Yarchin, CEO of Biscayne, added, “We’re pleased with this opportunity to combine with First Citizens, which has a long and proud 120-year history. Like Biscayne Bank, First Citizens has a strong culture of serving its customers, employees and communities. Together we can leverage our combined market knowledge and expertise and expand upon what each company has established to be even more successful.”
Keefe, Bruyette & Woods acted as financial advisor and rendered a fairness opinion to the board of directors of Biscayne in connection with this transaction. Ward and Smith represented First Citizens in the transaction, while Smith Mackinnon represented Biscayne.
Founded in 1898 and headquartered in Raleigh, NC, First Citizens Bank operates more than 500 locations across the country with 28 branches in Florida — 15 as First Citizens Bank and 13 as HomeBanc.
