U.S. News

UPDATE 1-Florida bank buying local rival without U.S. aid


CHARLOTTE, N.C., May 10 (Reuters) - Jacksonville Bancorp Inc said on Monday it plans to buy local rival Atlantic Bancgroup Inc in one of the first bank deals since the financial crisis done without U.S. government assistance. Under the terms of the deal, Atlantic Bancgroup shareholders would receive 0.2 share of Jacksonville Bancorp stock for every share of Atlantic stock owned. Jacksonville Bancorp expects to issue 250,000 shares as part of the deal. Atlantic shareholders might also receive cash, up to 65 cents per share. Four private investors -- led by Capgen Capital Group IV LP -- also agreed to purchase stock, adding $30 million in new capital to the merged company. The combined company would have $760 million in assets and $60 million in equity. Gilbert Pomar, currently the chief executive of Jacksonville Bancorp, would lead the combined company. Both banks are headquartered, and operate primarily around, Jacksonville, Florida, a region hard hit by the housing downturn. (Reporting by Joe Rauch, editing by Gerald E. McCormick) Keywords: BANKS/MERGER (joe.rauch@thomsonreuters.com; +1 704 692 5885; Reuters Messaging: joe.rauch.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.

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