Boca Raton, Fla.-based 1st United Bancorp Inc., parent of 1st United Bank ($350.7 million), will acquire Fort Lauderdale, Fla.-based Equitable Financial Group Inc. ($194.3 million) in a stock and cash deal valued at $55.6 million. The Carson Medlin Company, with Paula Johannsen acting as lead banker, served as financial advisor to Equitable Financial Group, Inc.

Under terms of the agreement, 1st United will pay a total of $55.6 million or approximately $101.29 per share for all of Equitable's outstanding shares and stock options in the form of 1st United common stock and cash, subject to a minimum of 50% stock. The transaction, which is expected to close in the first quarter of 2008, will result in Equitable Bank being merged into 1st United Bancorp, Inc.'s banking subsidiary, 1st United Bank. 

On an aggregate basis, the deal value represents 230% of book and tangible book, 17.3x LTM earnings and 28.6% of assets, while the tangible book premium represents 25.5% of core deposits. Offers for bank and thrift targets in the Southeast region since Oct. 1, 2006, have averaged 235% of book, 248% of tangible book and had a median of 28.8x LTM earnings on an aggregate basis.

1st United will enter Miami-Dade County, Fla., with one branch to be ranked No. 62 with a 0.1% share of $72.7 billion in total market deposits and will expand in Broward County, Fla., with four branches to be ranked No. 21 with a 0.4% share of $35.8 billion in total market deposits.

Smith Mackinnon PA served as legal adviser to Equitable Financial Group, Inc., with Jack Greeley acting as lead attorney.

Source: The Carson Medlin Co. & SNL Financial