MIAMI—Miami-bred, Eddy Arriola sits at the helm of Apollo Bank based in Brickell's Financial District. The locally owned and operated bank serves Miami's business community, including leading industries such as commercial real estate, healthcare, and technology.

Founded in 2010, Apollo focused on organic growth coming out of the gate and proved that a small community bank can grow and be profitable in Miami, even amidst a flood of new brands entering the market. Recently, Apollo agreed to acquire First Bank of Miami.

The deal, which is now subject to regulatory approval, will grow Apollo's asset base from $275 million to roughly $500 million and expand the bank's branch network to seven locations throughout Miami-Dade, including Downtown Miami, Kendall and Hialeah. GlobeSt.com caught up with Arriola, chairman of Apollo, to discuss the bank acquistion in part one of this exclusive two-part interview.

GlobeSt.com: What were the key factors when analyzing which type of bank to acquire?

Arriola: We see Apollo Bank and First Bank of Miami as complimentary institutions with a similar client base of small- and mid-sized businesses spread across South Florida and similarly composed real estate loan portfolios. The two institutions have very little overlap in terms of the banking services each provides, which was important to maximize efficiencies, and our combined branch network will give us a presence in the key business hubs and neighborhoods we want to serve moving forward.

GlobeSt.com: A main factor in acquiring First Bank of Miami is its RE loan portfolio. Tell us about the profile of its portfolio that made it an attractive decision.

Arriola: Our decision to acquire a bank was largely driven by South Florida's strengthening economy, with real estate playing a significant role. By growing Apollo Bank's size and lending capability, we will be able to provide financing for our clients' growing needs. We project our lending limit will grow to around $12 million, which will allow us to finance larger projects and acquisitions on behalf of our clients.

GlobeSt.com: Following the acquisition, what is Apollo Bank's strategy to further grow its CRE lending division?

Arriola: South Florida's commercial real estate market continues to show signs of growth, with industrial, hospitality, and retail all indicating strong performance in key markets. Our strategy is to continue growing our commercial real estate lending division over the next 12 to 18 months.

With that said, we are cautious about the projects we finance, as real estate values over the past year have escalated rapidly. We are looking to finance projects planned by local developers and owners who enjoy a strong track record in our community. These properties could be anything from small multifamily or retail assets, to single-family residential projects and office buildings.

Be sure to come back to this afternoon's Miami edition for part two of this exclusive interview.