May 11, 2010 (FinancialWire) — Jacksonville Bancorp, Inc. (NASDAQ: JAXB ), the bank holding company for The Jacksonville Bank, and Atlantic BancGroup, Inc. (NASDAQ: ATBC ), the bank holding company for Oceanside Bank, said they have signed a definitive merger agreement providing for the merger of ATBC into JAXB.

The merger agreement also contemplates the consolidation of Oceanside Bank into The Jacksonville Bank.

Jacksonville also said it signed a stock purchase agreement with four private investors led by CapGen Capital Group IV LP  providing for $30 million in new capital through the sale of newly issued shares of JAXB common stock subject to completion of the mergers.

The transactions have been approved by the boards of each company and are subject to regulatory approval, shareholders' approvals, and other customary conditions.  JAXB and ATBC said they expect to close the transaction in late third quarter of 2010.

Under the terms of the stock purchase agreement, JAXB will issue around three million shares of its common stock at a price of $10 per share.  The largest investment is coming from CapGen, which has agreed to purchase around$20 million.

At March 31, 2010, JAXB posted total assets of around$452 million and shareholders' equity of approximately $26.2 million. The bank serves its customers through five offices located in the greater Jacksonville area. At March 31, 2010, ATBC posted total assets of around$286 million and shareholders' equity of around$9.3 million. It operates four offices located in eastern Jacksonville and the Jacksonville Beaches.

Upon completion of the merger, the combined company will have around $760 million in assets and around $60 million in equity.  

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