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Scott Kavanaugh, CEO First Foundation

Scott Kavanaugh, CEO First Foundation

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.

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“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.