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NAPLES — Ovation Holdings, the parent company of Encore National Bank, is buying the three branches, most of the deposits and a portion of the loans of Royal Palm Bank in Naples.
Under the terms of the deal, Ovation will pay an undisclosed premium for the deposits, says Thomas Ray, Encore National Bank's CEO.
Besides the three branches, Ovation will assume $75 million in deposits and $28 million in loans. “The purchase of Royal Palm Bank, which is expected to be accretive to earnings, is directly in line with our long-term goals and follows our plan to build the leading Southwest Florida community bank,” says Mal Mixon, lead director for Ovation Holdings.
As of Dec. 31, Royal Palm had $89 million in assets and $86 million in deposits. The bank, which is owned by Mercantile Bancorp of Quincy, Ill., has suffered losses in recent years and has been operating under regulatory orders.
The deal is expected to close in the third quarter, pending regulatory approval. Encore National Bank reported total assets of $241 million and total deposits of $207 million as of Dec. 31. The commercial bank operates branches in Naples, Fort Myers, Port Charlotte and Sun City Center.
Click here to read more about Encore's strategy in a recent issue of the Business Review.
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