LAKEWOOD RANCH -- Community Bank of Lakewood Ranch’s parent company CBM Florida Holding Co. has reached an agreement to acquire the Tampa-based Palm Bank pending regulatory and shareholder approval, the company announced Tuesday.
The Palm Bank had been operating under a consent order requiring it to immediately raise capital. The merger meets that obligation while boosting Community Bank’s assets to more than $850 million.
Headquartered in Lakewood Ranch, the bank will now own a majority share of 20 banking centers from Charlotte to Pasco counties. The three new branches acquired this week are all located in downtown Tampa.
Terms of the deal were not disclosed.
“This allows us to not only serve our original home of Manatee, but also the St. Petersburg and Tampa markets,” company Chief Executive Officer Trevor Burgess said. “It’s a great time to be in banking if you have proper capitalization, which we do.”
CBM was established in 2008 to rehab lending institutions across Florida. The company first acquired the Manatee-based Community Bank in December 2009. It also purchased a controlling interest of First Community Bank of America this May.
The company has notched six consecutive profitable quarters, with a reported year-to-date net income of $3 million as of Sept. 30.
Burgess said the latest acquisition will allow the bank to expand its lending potential.
Community Bank wrote $85 million in personal consumer and business loans in 2010. That figure is expected to climb to about $150 million this year, Burgess said.
“We’re focused on making great loans to deserving consumers and businesses so they can help the economy grow and hire local workers,” he said. “That’s the reason we’re doing this.”
The board of directors at both The Palm Bank and Community Bank have signed off on the deal, which remains subject to regulatory approval and approval by the shareholders of The Palm Bank.
The merger is expected to close in the first half of 2012.
CBM now employs 150 workers through its 30 banking centers.
The company also this year invested in online banking upgrades and a marketing partnership with the Tampa Bay Buccaneers.
“This transaction gives our customers a broader range of products and services, while maintaining the best in class service they’ve come to expect,” The Palm Bank’s CEO Robert Covington said in a statement.
Josh Salman, Herald business writer can be reached at 941-745-7095.
