Popular Inc. announced Monday that Popular Community Bank, its U.S. banking subsidiary, completed the previously announced sale of its Central Florida regional operations to Harbor Community Bank, a wholly owned subsidiary of HCBF Holding Company Inc.
As part of the transaction, PCB sold its nine branches in the Central Florida area, including $104 million in loans and $217 million in deposits, each as of Aug. 31, 2014.
The transaction is expected to result in a net premium of some $1 million, before customary transaction related costs, the bank said.
This transaction is part of the previously announced strategic reorganization of Popular Inc.’s U.S. operations, which includes the sale of PCB’s regional operations in California, Illinois and Central Florida and the centralization of certain back office operations in Puerto Rico and New York.
“With the reorganization, PCB will strengthen its mainland U.S. presence by concentrating on the New York and South Florida markets,” the bank said in a statement.
The sale of the Illinois regional operations was completed on Aug. 8, 2014 and the sale of the California regional operations is expected to close prior to the end of 2014.
RBC Capital Markets, LLC acted as financial advisor to Popular. Sullivan & Cromwell LLP, New York, NY, and Holland & Knight LLP., Miami, FL, acted as legal counsels to Popular.