Stonegate Bank inked an offer to get Community Bank of Broward, one of its largest local competitors. 

The Pompano Beach-based bank (NASDAQ: SGBK) will pay common stock valued at $26 each share to proprietors of Weston-based Community Bank of Broward - as compared to its closing price of $25.96 on Friday. The deal is valued at $61.2 million, or 140 percent of the seller's tangible publication worth.

For comparison, the bank's earnings of $1.7 million in the first half of 2014 was a return on equity of about 4 percent. At that rate, it would certainly take 5 years for Community Banking of Broward to accomplish the costs gotten in the promotion.

The premium is a big gain for Community Bank of Broward shareholders after the bank was saddled with a governing enforcement activity in 2012 as it had problem with funding losses after the Great Recession. That order was lifted in November 2013 as well as the bank reclaimed success.

'We have been friendly competitors for many years and now we could become a component of their very higher performance financial company,' Community Bank of Broward President and also Chief Executive Officer Bruce Keir said. 'We will also be able to provide additional products and services for our customers. We have a common culture of performance, superb customer care and follow-through and also I am extremely delighted concerning this new partnership'.

Keir would certainly sign up with Stonegate as Chief Executive Officer of its Broward operations, according to Stonegate Banking President as well as Chief Executive Officer Dave Seleski.

For Stonegate Bank, this would be its second purchase of the year. It got Florida Shores Bancorp in January. Seleski said Neighborhood Banking of Broward is a great fit since it has a sturdy market visibility in western and southern Broward, while Stonegate is strongest in the eastern part of the county.