Stocks

First Foundation (FFWM) to Acquire TGR Financial for $295M

With an aim to further solidify its banking and trust services in Florida, First Foundation Inc. FFWM recently announced the execution of a deal, under which TGR Financial, Inc. will merge into First Foundation. The all-stock deal, expected to close in the second half of this year, however, awaits regulatory approvals, consents of both companies’ shareholders, and is subject to customary conditions.

Scott F. Kavanaugh, CEO of First Foundation, said, “This acquisition highlights our desire to continue growing our business in markets with attractive demographic and economic trends and we are excited to have a regional presence spanning from coast to coast."

Transaction Details

Based on First Foundation’s common stock‘s closing price as of Mar 28, the transaction is valued at $295 million. Per the terms of the deal, shareholders of TGR Financial will get 0.6068 share of First Foundation's common stock for each share of TGR Financial’s common stock. Thus, following the closure, TGR Financial shareholders will own roughly 20.2% of outstanding shares of First Foundation’s common stock.

As of Mar 31, 2021, TGR Financial operated seven branch offices in Southwest Florida, with total assets of $2.3 billion. After the conclusion of the deal, First Florida Integrity Bank, the bank subsidiary of TGR Financial, will be merged with and into First Foundation Bank. Further, First Foundation’s assets will increase to more than $9.4 billion on a pro forma basis.

Following the transaction’s completion, Gary L. Tice will join First Foundation’s board of directors.

Conclusion

Over the years, First Foundation has grown strategically through acquisitions. In 2017, the company’s acquisitions of Premier Business Bank and Community 1st Bank boosted its financials substantially. Some of the other buyouts that expanded the company's footprints, include two branches in Seal Beach and Laguna Hills from Pacific Western Bank in 2016, Pacific Rim Bank in 2015, and Desert Commercial Bank in 2012.

Over the past six months, shares of First Foundation have rallied 32.5%, underperforming the industrys gain of 35.8%.

Zacks Investment ResearchImage Source: Zacks Investment Research

Other Finance Stocks Making Similar Moves

M&T Bank Corporation MTB and People’s United Financial Inc. PBCT announced another such merger deal in 2021. The all-stock deal worth $7.6 billion is likely to close in the fourth quarter of 2021, subject to necessary approvals.

Huntington Bancshares Incorporated HBAN and TCF Financial Corporation also announced a merger deal in December 2020. It is expected to close in the ongoing quarter and is subject to regulatory consents.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>


Click to get this free report

M&T Bank Corporation (MTB): Free Stock Analysis Report

Huntington Bancshares Incorporated (HBAN): Free Stock Analysis Report

Peoples United Financial, Inc. (PBCT): Free Stock Analysis Report

First Foundation Inc. (FFWM): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Investing

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More