Florida Community Bank finalized a deal to obtain Great Florida Bank. The Great Florida Bank had been ordered by regulators to improve its capital structure. Florida Community Bank is a Weston-based subsidiary of private equity owned Bond Street Holdings.
Florida Community Bank decided to shell out US$3.24 per Great Florida Bank share, a wide difference compared to the US$0.32 per Great Florida Bank share last week. Great Florida Bank CEO and President, M. Mehdi Ghomeshi, said that the Florida Community Bank valuation equates to 85% of the bank's book value, which already takes into consideration the bank's equity capital levels.
"I feel very good that our associates and shareholders did well. Not as well as obviously I expected. I didn't anticipate the greatest because of the worst economic meltdown since World War II. I was able to survive when no one thought we would," Mr. Ghomeshi said.
Analysts said that Florida Community Bank is looking to use up its excess funds to purchase Great Florida Bank. Florida Community Bank had previously raised funds to purchase Atlantic Coast Financial Corp. last month but Atlantic Coast Financial's shareholders voted against the acquisition.
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