Daytona Beach, Florida based Floridian Financial Group, Inc., parent of Floridian Bank ($67.5 million) has agreed to merge with Orlando, Florida based Orange Bank of Florida ($151.4 million) in an all stock deal. The Carson Medlin Company, with Paula Johannsen acting as lead banker, served as financial advisor to Orange Bank of Florida.
The merger agreement provides for Orange Bank of Florida to become a wholly owned subsidiary of Floridan Financial Group, Inc. Terms of the all stock exchange were not disclosed. Each bank will will maintain their individual identities, management and employees. The transaction is expect to close in the first quarter of 2008.
As a result of the merger, Charlie Brinkley will become the Chairman and Chief Executive Officer of Floridian Financial Group. In a recent announcement, Charlie Brinkley joined Orange Bank to lead the bank's strategic initiatives including mergers and acquisitions.
"This opportunity is just the tip of the iceberg", said Charlie Brinkley. "We anticipate expanding this business plan by affiliating with additional banks of similar cultures throughout the state of Florida. Our expectations are to grow a Florida based affiliation of outstanding community banks with high profitability characteristics. We have the experience, contacts, resources and strategic plan to be successful in creating an enviable banking footprint in the state which should result in substantial shareholder value", concluded Brinkley.
Along with Charlie Brinkley becoming Chairman and Chief Executive Officer of Floridian Financial Group, Michael L. McClanahan will remain President and Chief Executive Officer of Orange Bank and will assume the role of Vice Chairman of the holding company. Thomas H. Dargan, will remain Chairman and Chief Executive Officer of Floridian Bank and will become President and Chief Operating Officer of the holding company. Keith A. Bulko will remain President of Floridian Bank.
It should be noted that Messrs. Brinkley and Dargan were partners in Southern Community Bank previously headquartered in Orlando, Florida. Both individuals are well known throughout the Florida banking industry as they were past Chairmen of the Florida Bankers Association.
Floridian Bank, headquartered in Daytona Beach, Florida opened for business in March 2006 and has grown to a level of $67 million in assets at the end of September 2007. Floridian has three full service offices located in Volusia and Flagler Counties and will be adding a fourth branch in Port Orange, Florida in the near future. Orange Bank headquartered in Orlando, Florida, commenced operations in June 2005 and has grown to $151 million in assets as of September 30, 2007. It operates five full service banking centers located in Orange, Seminole and Citrus Counties. In addition, Orange Bank is opening two more locations in Winter Park and Inverness, Florida. Each bank has excellent asset quality as exemplified by the absence of any loan charge-offs since their respective inceptions. Further, the capital levels at each bank far exceed all regulatory measures of "well capitalized".
"We are extremely excited to be able to partner with Orange Bank which we consider to be the premier community bank in the attractive markets surrounding Orlando," noted Thomas H. Dargan, Chairman and Chief Executive Officer of Floridian Bank. "Mike McClanahan, the board of directors and the staff of Orange Bank have created a high growth, profitable financial institution in their short two years of operations, added Dargan, and we are looking forward to building on their success."
"This merger is a special event for Orange Bank as the affiliation with Floridian brings together two well run community banks and it also reunites the winning team of Brinkley and Dargan", said Michael L. McClanahan, President and Chief Executive Officer of Orange Bank. "Each bank is driven by the same community banking culture of superior customer service. "This combination creates a full service financial institution network serving customers from the east coast to the west coast of Florida along the I-4 corridor", continued McClanahan.
