On June 3, Dallas-based First Foundation Inc., a financial services company with two operating subsidiaries, First Foundation Advisors and First Foundation Bank, and Naples, Florida-based TGR Financial Inc., the holding company of First Florida Integrity Bank, jointly announced the execution of a definitive agreement under which TGR Financial will merge into First Foundation in an all-stock transaction valued at approximately $295 million, or $15.23 per TGR Financial share, based on the closing price of First Foundation’s common stock on May 28. The transaction is expected to close in the second half of 2021.
First Florida Integrity Bank reports $2.3 billion in total assets as of March 31 and operates seven branches in Southwest Florida. Immediately following the merger of TGR Financial with and into First Foundation, First Florida Integrity Bank will merge with and into First Foundation Bank. The transaction will increase First Foundation’s total bank assets to approximately $9.4 billion on a pro forma basis as of March 31.
“This strategic acquisition provides First Foundation an excellent opportunity to expand into a highly desirable market,” says Scott F. Kavanaugh, CEO of First Foundation. “First Florida Integrity Bank has built a valuable banking franchise and we are committed to continuing its legacy by serving the needs of all its clients and enhancing its offering with our broad platform of services, as well as supporting programs available to local nonprofits in the bank’s communities. 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.”
“We are pleased that we have aligned with an organization that will expand resources to our clients, offering First Foundation’s integrated banking and wealth management services through our local team,” says Gary L. Tice, chair and CEO of TGR Financial. “Because of its financial strength, profitable history and with much of its growth still before it, First Foundation makes for an ideal partner for our clients, employees, and shareholders.” Upon closing of the transaction, Tice will join the First Foundation board of directors.
This will become the sixth acquisition for First Foundation Inc, which has acquired numerous California-based banks over the past few years, including Los Angeles-based Premier Business Bank, Sacramento-based Community 1st Bank , Palm Desert-based Desert Commercial Bank and two branches from Pacific Western Bank , as well as Honolulu, Hawaii-based Pacific Rim Bank.
Established in 1985, First Foundation Inc. and its subsidiaries offer personal banking, business banking and private wealth management services through banking offices in California, Texas, Nevada and Hawaii. In April, the company announced its expansion into Texas with the relocation of its headquarters to Dallas.
