First American Bank in Elk Grove Village, Ill., has agreed to buy Bank of Coral Gables in Florida.
The $3.4 billion-asset First American did not disclose the price it will pay. The deal is expected to close in the third quarter.
"We are proud to add the Bank of Coral Gables to our banking family. Their founders and capable staff bring a wealth of local knowledge and insight to our expanding Florida market," First American Chairman Thomas E. Wells 4th said in a press release Monday.
The acquisition will expand First American's operations in southern Florida. The privately owned bank, which has 49 branches in the Chicago area, has been an active lender for Small Business Administration and Export-Import Bank loans in the Miami-Dade area.
The news comes after a series of setbacks for Bank of Coral Gables. The South Florida Business Journal reported last week that the bank lost $142,000 in the first quarter. The bank has also fallen short of a key capital ratio required by regulators.
"The merger will be very beneficial for current and new customers who will have access to an additional array of financial services and products including wealth management, foreign receivable financing and SBA loans," Dan Eggland, Bank of Coral Gables' president and CEO, said in the release.
