Eliot J. Schechter/Bloomberg News
BankUnited, a Florida lender that was taken over by private equity firms during the financial crisis, has reached a deal to acquire Herald National Bank of New York for $71.4 million.
Under the terms of the deal, Herald National shareholders can choose cash or stock worth $1.35 plus the value of 0.0990 BankUnited share. The deal is worth 1.1 times Herald National’s book value when subtracting a deferred tax assets.
“The acquisition of Herald is an important step toward expanding the reach of BankUnited into the New York market,” Rajinder P. Singh, BankUnited’s chief operating officer, said in a statement.
BankUnited currently serves 13 Florida counties through more than 80 branches, but its management has New York roots. Its chief executive, John Kanas, ran North Fork Bancorp on Long Island before its $14.6 billion sale to Capital One.
BankUnited was closed by the Federal Deposit Insurance Corporation in 2009 and sold to a consortium that included Wilbur L. Ross Jr., the Blackstone Group, the Carlyle Group and Centerbridge Partners. The bank went public in January, raising $780 million.
Herald National has three offices in Manhattan, one in Brooklyn and one on Long Island.
BankUnited was advised by the law firm of Skadden, Arps, Slate, Meagher & Flom LLP. Herald National was advised by and received a fairness opinion from Sandler O’Neill and was advised by the law firm of Luse Gorman Pomerenk & Schick.