Bank of Coral Gables sale closes

Enlarge Photo

Mark Freerks

Bank of Coral Gables' net interest income in the first quarter wasn't enough to cover its operating and other non-interest expenses.

Nina Lincoff

Reporter- South Florida Business Journal

Email  |  Twitter

The Bank of Coral Gables' sale to Chicago-based First American Bank closed today, following approval from the state of Illinois earlier this week.

First American Bank bought the $103 million-asset bank for $7.5 million.

The sale follows repeated losses for the Bank of Coral Gables, which fell into an "adequately capitalized" position. First American Bank, one of the leading U.S. Small Business Administration lenders in Miami-Dade County, plans to use its newly acquired South Florida location to grow commercial and small business lending in the area.

The merger is the next best move for the Bank of Coral Gables and its customers because it will provide a broader range of services, including more up-to-date technology products, Chairman William H. Kerdyk Jr. said.

Kerdyk will remain on the institution's board of directors, in addition to serving as a member of a Miami-based advisory board.

The Bank of Coral Gables was founded in 2006.

"The merger process has gone extremely smoothly and we expect the transition from the Bank of Coral Gables to First American Bank to be an easy process as well," Kerdyk said.

Because both institutions use the same core processing system, the transition is expected to be relatively easy. In addition, existing Bank of Coral Gables employees will remain with the new entity and maintain relationships with current customers.

The bank has been communicating with its customers in writing and in person about the transition.

Nina Lincoff covers banking, finance, and insurance. Get the latest banking news with our free daily newsletter. Click here to subscribe.