A major Miami bank acquisition is set to form the third-largest bank based in the state of Florida.
On Friday, City National Bank announced it was purchasing TotalBank for $528 million from Banco Santander of Spain. After the acquisition from City National Bank, the two banks will have combined assets of almost $13 billion, $7.8 billion in loans and $8.1 billion in deposits, as of September.
The time line for the merger is still unknown, pending regulatory approval. But if completed, it will signal a major move for two banks that are stalwarts of the South Florida banking community.
City National was founded by the Abess family more than 70 years ago. In 2008, then-owner Leonard Abess sold it to a Spanish bank, famously sharing $60 million of the sale with employees. It subsequently was purchased by Banco de Crédito e Inversiones in 2015 for $882.8 million, a move that made it a subsidiary of Chile’s third largest bank.
TotalBank has been in operation for more than 40 years. Business leader and philanthropist Adrienne Arsht ran Total Bank as chair of the board from 1996 to 2007, when it was sold to Banco Popular Español for $300 million. Shortly thereafter, she donated $30 million to what is now called the Adrienne Arsht Center for the Performing Arts.
Acquiring TotalBank strengthens its South Florida ties, City National said in a press release, and helps solidify its position as “the big bank alternative” in Florida.
“We have built a platform focused on the right people, technology and solutions to allow City National Bank to compete with the big banks while still delivering a best-in-class service experience based on personal relationships and local decision-making that larger institutions cannot replicate,” Jorge Gonzalez, City National Bank’s president and CEO, said in a release. He will lead the combined institution.
TotalBank, which has17 banking centers in Miami-Dade and wealth management and international banking platforms, called the sale a beneficial move for its clients and the South Florida community.
“This is a great fit for both organizations,” TotalBank chairman and CEO Jorge Rossell said in a news release.
Both City National and TotalBank have received 5-star “Superior” ratings from leading bank ratings firm BauerFinancial, with City National earning the accolade for 21 consecutive quarters and TotalBank for 15.