Colonial Bank adds four South Florida branches with merger
By Samantha Joseph
Miami-Dade and Broward will gain four branches of Colonial Bank following a $141 million merger with PCB Bancorp Inc. to expand the Colonial's market presence in these growing markets, bank officials said.
Tuesday's merger of Colonial BancGroup and the Clearwater-based PCB Bancorp Inc. will see a name change for PCB and its four subsidiaries in Largo, Fort Lauderdale, Fort Myers and Venice, Florida.
PCB's subsidiaries - Premier Community Bank of South Florida in Fort Lauderdale, Premier Community Bank of Florida in Largo, Premier Community Bank of Southwest Florida in Fort Myers and Premier Community Bank in Venice - operate 16 full-service offices. The bank has branches in Miami Lakes, Pembroke Pines, Sarasota, Englewood, Lehigh Acres and Belleair Bluffs.
On the state's west coast, the deal will increase Colonial's branches from 18 to 23.
"Even though we're already in these markets, their branches are filling in on top of ours in these locations, adding to what we already have - and that's a good thing," said Colonial's director of investor relations, Glenda Allred.
For PCB's clients, the merger and name change will mean more locations and extended services, Ms. Allred said. As Colonial customers, former PCB clients will have access to wealth and cash-management services as well as improved commercial lending opportunities not available under the old management.
Ms. Allred said the merger will allow them the benefits of doing business with a larger bank whose holding company has $15.8 billion in assets and 270 offices in several states. PCB reported assets of $664 million in the merger announcement.
The deal will see Colonial pay 75% of the acquisition price to PCB in Colonial stock and the remaining 25% in cash.
The merger will add $519 million in deposits to Colonial's portfolio, making it Florida's sixth-largest bank and 10th-largest financial institution, with $1.73 billion in deposits, according to Ms. Allred. Before the merger, statistics from the Federal Deposit Insurance Corporation in June ranked Colonial as Florida's seventh-largest bank and 11th largest financial institution in terms of deposits.
Colonial's headquarters is in Montgomery, AL.
"So far, it's been a positive thing," said Ms. Allred, who pointed to a 2-cent increase in the bank's stock price after the announcement. Colonial stock closed Tuesday at $17.28.
However, the merger will not bode well for some PCB staff, especially those with supplementary or support jobs.
"We plan to keep all of the employees who have customer contact... but we do not anticipate maintaining the back-office areas," Ms. Allred said. She would not elaborate on the extent of a downsizing or say how soon the company would start cutting back.
"A lot of them," she said, "would probably not be retained."