Copyright 2010 SNL Financial LCAll Rights Reserved SNL Bank M&A Weekly
May 10, 2010
2 Fla. banks in merger talks
Jacksonville Bancorp and Atlantic BancGroup have been holding merger discussions and could be close to inking a deal, SNL has learned.
Jacksonville Bancorp Inc. and Atlantic BancGroup Inc. have been holding merger discussions and could be close to inking a deal, SNL has learned.
The two banks have been in discussions for weeks, but it is believed the deal, which was described as complex, has yet to be finalized. An official from Jacksonville, Fla.-based Jacksonville Bancorp declined to comment, and Atlantic BancGroup, based in Jacksonville Beach, Fla., did not immediately return calls seeking comment.
Jacksonville Bancorp explored expanding through an acquisition in the early part of 2008. The company announced plans to acquire Heritage Bancshares Inc. in January 2008, but that deal ultimately fell apart.
Atlantic BancGroup shareholders would likely welcome a deal, as the company’s stock has fallen close to 70% during the last year amid deteriorating credit quality and elevated credit losses. In April, Atlantic BancGroup’s auditor issued a going concern warning, stating the company’s net losses “raise substantial doubts” as to its ability to continue operating, according to Atlantic BancGroup’s Form 10-K. Atlantic BancGroup reported losses of $5.0 million for the quarter ended Dec. 31, 2009, and $7.2 million for the full year 2009. The company’s nonperforming assets have continued to increase, rising to 9.01% at March 31 from 8.68% at the end of 2009, according to SNL data.
In March, the institution entered into a written agreement with the Federal Reserve agreeing to not declare or pay dividends. The agreement also prohibited Atlantic BancGroup from increasing or guaranteeing any debt or redeeming shares without prior approval. This agreement came after the FDIC issued a consent order to Atlantic BancGroup unit Oceanside Bank in January.
May 17, 2010