Financial Services Partners Fund I has invested USD11m in FirstAtlantic Financial Holdings and its wholly owned subsidiary FirstAtlantic Bank, located in Jacksonville, Florida.
The stock purchase agreement between the companies was originally executed on 11 June 2010, to enable this initial purchase of USD11m in common shares, and potentially up to USD25m over time, not to exceed 24.9 per cent ownership in the bank.
Hovde Private Equity Advisors, the fund’s investment manager, served as the lead investor in an equity offering by the bank to existing shareholders and other local investors. In connection with this transaction, Joseph J. Thomas, managing director of Hovde Private Equity Advisors, has been elected to the bank’s board of directors.
The proceeds of the capital investment by Hovde will enable the bank to take advantage of organic growth opportunities as well as bank acquisitions in the broader Florida market via the acquisition of one or more banks out of receivership from the FDIC through purchase and assumption transactions and/or other franchise growth transactions.
Thomas says: "We are very excited to partner with FirstAtlantic Bank’s board of directors and management and to invest in such a strong community bank. We believe that the Jacksonville market offers very compelling growth opportunities in the owner-managed business and professional segment. This investment in FirstAtlantic Bank was undertaken with the intent to not only grow the bank organically, but also with an eye toward participating in future bank acquisitions and FDIC-assisted transactions in Florida."
Mitch Hunt, chief executive officer of FirstAtlantic Bank, adds: "We are pleased that this successful equity offering will enable us to better serve our existing customers and will allow the bank to pursue larger clients and profitable credit opportunities. Our board has been very impressed by Hovde’s unique knowledge of the market, substantial banking experience, and history of investing in community banks. Joe Thomas will add substantial expertise to our Board as we consider acquisition opportunities going forward."
Hovde Acquisition, founded in 1994 and based in Washington, DC, is an affiliate of Hovde Private Equity Advisors and the manager of Financial Services Partners Fund. Since its founding in 1994, Hovde Acquisition has made equity investments in 12 community banks and thrifts as well as four specialty finance/financial services companies.
