Juno Beach, Fla.-based Anchor Bank agreed to purchase Hallandale Beach, Fla.-based Home Federal Bank of Hollywood in a stock-for-stock merger.

Anchor Bank announced the deal in a Nov. 2 news release, but terms of the transaction between the private banks were not disclosed.

Anchor Chairman, President and CEO Nelson Hinojosa said the transaction can help diversify his company. "Home Federal has more focus on residential financing, and we are more focused on the commercial side of the loan opportunities," he said in an interview. "I think the two portfolios together give us a great balanced portfolio."

Hinojosa added that Home Federal will have one to two seats on Anchor's seven-person board.

Home Federal has not been profitable in recent years. For the first nine months of 2020, Home Federal reported a loss of $1.1 million. As of Sept. 30, the target saw total assets fall 4.9% year over year to $54.6 million and deposits fall 8.5% year over year to $40.9 million.

But merging Home Federal into the larger Anchor, which had $162.8 million in assets and $117.5 million in deposits as of Sept. 30, should give the combined company more resources to compete, DD&F Consulting Group Principal Tom Rudkin said in an interview. "Even though there are fewer banks in Florida, it's gotten very competitive," said Rudkin, who helped advise Anchor.

The deal will also help Anchor, which has three branches on the east coast of Florida, to extend its franchise further south with the acquisition of Home Federal's one branch.

Anchor was advised by DD&F Consulting Group and law firm Avila Rodriguez Hernandez Mena & Ferri. Faust Financial LLC was financial adviser to Home Federal.

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