Stonegate Bank has signed a definitive merger agreement to acquire Southwest Capital Bank, a subsidiary of Florida-based Southwest Capital Bancshares, in an all stock transaction valued at approximately $9.4m.

As a result of the merger, the combined company is expected to take the advantage of the current growth opportunities in Florida.

Following the completion of merger, David Seleski will remain as president and CEO of the combined entity and Bruce Schultz will continue to oversee the bank’s operations in Lee County under the Stonegate banner.

Stonegate’s current board of directors will remain intact but be expanded by one seat to include Gerald Laboda, vice chairman of the Southwest Capital Bancshares board.

Florida-based Stonegate operates five branches throughout Southern Florida that include Boca Raton, Coral Springs, Fort Lauderdale, Jupiter and Naples.