We issued a press release this morning about some very big news for us. I think you’ll find it interesting, so I decided to post it here for you to read. It may raise some questions, so please leave a comment below. I’ll probably post another message tomorrow about the news below, so let me know what you think and what questions you have, and I’ll do my best to explain everything tomorrow.
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OLD FLORIDA NATIONAL BANK AND MERCANTILE CAPITAL CORPORATION ANNOUNCE MERGER AGREEMENT
ORLANDO, Fla. — Old Florida National Bank and Mercantile Capital Corporation have entered into a Merger Agreement. Old Florida National Bank (Old Florida), headquartered in downtown Orlando, expects the merger to be finalized in the late fourth quarter or early first quarter of 2011.
Randy Burden, chairman of Old Florida, and Geof Longstaff, chairman of Mercantile, jointly announced the merger.
Old Florida National Bank, formed in 1982, currently operates eight (8) full-service retail banking facilities throughout Central Florida and Inverness, Florida and boasts over $375 million in assets.
Mercantile, the seven-year old Altamonte Springs firm that specializes in U.S. Small Business Administration (SBA) 504 loans for owners of small to mid-sized businesses who want to acquire or develop their own facilities, has provided commercial loans in 30 states and Puerto Rico for more than $513 million in total project costs since it opened as Mercantile Commercial Capital, LLC in late 2002.
“The merger substantially extends Old Florida’s capacity to engage in commercial lending,” Randy Burden said.
“Mercantile ranks as one of the largest and best known providers of SBA-504 lending in the nation,” Burden said. “They have succeeded in developing a well-known and well-respected brand with a solid reputation in the small business community,” Burden added.
Longstaff, who has served as President of three banks in the area over the past three decades, said the merger brings substantial resources to bear on Mercantile’s effort to serve small business owners nationwide.
John Burden, President of Old Florida, said “the merger creates a strong, cohesive banking organization squarely focused on serving consumers, professionals and the small business sector.”
“Old Florida National Bank is a home-town bank well known for personal service to our customers and a smart, reliable approach to banking,” Burden said.
“We are very pleased to offer Mercantile’s services to our customers and to further our service to Central Florida’s small business community,” he said.
Christopher G. Hurn, chief executive officer of Mercantile Capital Corporation, said “the merger enables Mercantile to expand its services and to help more small business owners nationally.”
“Our merger substantially expands the capital resources we can bring to the small business sector of the U.S. economy,” said Hurn.
Mercantile Capital Corporation will operate as a wholly-owned subsidiary of Old Florida National Bank. The combined entities are estimated to have nearly $400 million in total assets upon completion of their merger, making Old Florida one of the largest Orlando-based community banks.
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Again, I’ll write more tomorrow to explain everything, but I want you to know right away that this is good news for us and will allow us to do more of what we’ve always done: Fulfill Dreams with Smarter Financing.
Dedicated to Your Continued Success,
P.S. Thanks for keeping up with us on this blog, and also on Facebook, Twitter and LinkedIn. If you’re not connected to us through these other social media, be sure to go there and like/fan/follow/connect/whatever so we can get you the most up-to-date news about our fair company and the state of small business lending.
Tags: Christopher G. Hurn, Florida, Mercantile Cap Corp, Mercantile Capital Corporation, Mercantile Commercial Capital LLC, Old Florida National Bank, Small Business Administration, U.S. Small Business Administration