Home BancShares Inc. of Conway is expanding its Florida franchise in an $88.5 million transaction.
The parent company of Centennial Bank today announced the purchase of Giant Holdings Inc., the parent of Landmark Bank of Fort Lauderdale.
The addition of the $463 million-asset lender will push total assets at Home BancShares to about $10.2 billion.
Shareholders of Giant Holdings will receive $70 million stock and $18.5 million in cash. The stock-cash combo deal is expected to close during the first quarter of 2017 along with the merger of Landmark Bank into Centennial Bank.
"The acquisition of Landmark allows us to increase our market share in the Fort Lauderdale area," said John Allison, Home’s Chairman. "We consider this acquisition a smart deal, and it is immediately accretive to diluted earnings per share, book value and tangible book value.
"We have remained disciplined in our pricing in order to provide our shareholders added value on day one, while adding a great bank to our company."
Centennial already had the 29th largest bank presence in Florida as measured by deposits, and only 12 banks have more branches in the Florida than Centennial's 58.
Landmark, a national bank chartered in 1998, reported $52.6 million in equity capital as of June 30.
Net income for the first half of 2016 was $460,000, a steep decline from 2015, when the bank earned $2.63 in the first two quarters on its way to a $5 million annual profit. After chargeoffs in the first quarter, Landmark charged off $1.1 million in the second quarter.
Landmark recorded a profit of $4.87 million in 2014, the year it made an FDIC-assisted acquisition of a hometown competitor, Valley Bank, with $81.8 million in total assets.