First Foundation Inc. (Nasdaq: FFWM), which has its bank and wealth management executives based in Irvine, said it will buy TGR Financial Inc. (OTCQX: TGRF) in an all-stock transaction valued at $295 million to expand into Florida.
First Foundation will pay $15.23 per TGR Financial share, based on the closing price of First Foundation’s common stock on May 28. Shares of TGR rose 3.9% to $14.55 and a $257 million market cap while First Foundation shares fell less than 1% to $24.97.
TGR is the holding company of First Florida Integrity Bank, a Florida state-chartered bank with $2.3 billion in total assets as of March 31 and seven branch offices located in Southwest Florida. The transaction will increase First Foundation’s total bank assets to approximate $9.4 billion on a pro forma basis as of March 31, 2021.
“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,” First Foundation Chief Executive Scott F. Kavanaugh said in a statement.
Kavanaugh in March moved to the Dallas area where he is setting up First Foundation’s corporate headquarters. The remaining executives are continuing to work at its Irvine offices.
