TAMPA - Tampa-based Florida Bank Group Inc. announced Thursday that it has reached a deal to acquire Palm Harbor bank holding company Anderen Financial Inc.

The all-stock transaction would grant each Anderen shareholder 1.32 shares of Florida Bank stock for each Anderen share.

Anderen is the parent company of Anderen Bank, which has $150 million in assets. Florida Bank Group has $843 million in assets.

The merger has been endorsed by the boards of both banks, but is still subject to approval by regulators shareholders.

The transaction is expected to close in the fourth quarter of this year.

As part of the merger agreement, Florida Bank agreed to raise no less than $10 million and no more than $30 million of additional equity. The money will primarily will be utilized to reduce the amount of the bank's non-performing assets, the bank said.

"The combination of these transactions will significantly strengthen the financial position of the combined company and increase shareholder value, said Robert Rothman, Chairman and CEO of FBG stated.

Anderen and Florida Bank were both rated three stars, or "good," by Bauer Financial, a rating company covering financial institutions.

Reporter Shannon Behnken can be reached at (813) 259-7804.