Home BancShares Finalizes $820M Stonegate Bank Buy

Home BancShares Finalizes $820M Stonegate Bank Buy
Home BancShares Chairman Johnny Allison announced the Stonegate Bank merger in March at the Little Rock Regional Chamber. (Sarah Campbell)

Home BancShares Inc. of Conway said Tuesday that it had completed its previously announced acquisition of Stonegate Bank of Pompano Beach, Florida, in a transaction worth about $820 million.

The deal for Stonegate to merge into Home BancShares' Centennial Bank was effective at the close of business Tuesday. It will expand Centennial Bank's presence in Florida and propel Home BancShares farther beyond the $10 billion-asset mark.

"The completion of the acquisition of Stonegate is a pivotal moment for Home and our Florida footprint; and is another example of our ability to make smart, strategic deals that are immediately accretive to diluted earnings per share, book value and tangible book value," Home BancShares' Chairman Johnny Allison said in a news release. "The combination of Home and Stonegate's parallel strengths creates an outstanding financial institution with experienced local leadership and talented associates who are ready to serve our valued customers and communities throughout our business footprint. Like our previous mergers, the merger of Stonegate provides added shareholder value on day one while increasing our market share in Florida."

The deal received approvals from the Federal Reserve Board and the Arkansas State Bank Board last month. It is Home BancShares' biggest acquisition ever — even bigger than its $230 million deal to buy Liberty Bancshares Inc. of Jonesboro, announced in 2013. 

In all, Home BancShares (Nasdaq: HOMB) has completed 22 acquisitions, many of them in the Sunshine State. The Stonegate purchase pushes Home BancShares' assets to about $13.5 billion.

As of June 30, Stonegate had $3.13 billion in total assets, $2.44 billion in loans and $2.62 billion in deposits. With the completion of the acquisition, Home BancShares now operates 76 branches in Arkansas, 89 in Florida, six in South Alabama and one in New York City.

Per the deal, Home BancShares will issue 30,864,029 shares of its common stock valued at $742.3 million as of Tuesday, plus $50.1 million in cash in exchange for all outstanding shares of Stonegate common stock. In addition, those holding outstanding stock options of Stonegate received $27.6 million in cash in cancellation of their options immediately before the merger.

DD&F Consulting Group of Little Rock served as financial advisor and Mitchell Williams Selig Gates & Woodyard PLLC of Little Rock served as legal counsel to Home BancShares.

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