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Fed, State Bank Board OK Home BancShares’ Stonegate Bank Deal

2 min read

Home BancShares Inc. of Conway said Tuesday that its previously announced merger with Stonegate Bank of Pompano Beach, Florida, received approval from the Federal Reserve Board and the Arkansas State Bank Board.

Announced in March, the $777.6 million deal will expand Centennial Bank’s presence in the Florida and will propel the bank farther beyond the $10 billion-asset mark. Home BancShares is the parent company of Centennial Bank.

“Approvals by the Federal Reserve and the Arkansas State Bank Board and the effectiveness of the registration statement permit us to move ahead with the merger in a timely manner,” Home BancShares Chairman John Allison said in a news release. “Obtaining regulatory approval less than five months from the announcement of the merger is a testimony to our company’s preparedness and strategic planning for the integration of Stonegate into Centennial. We are ready to provide our shareholders, customers and communities with the benefits from this merger.”

Home BancShares also said that another part of the deal — issuing shares of Home BancShares (Nasdaq: HOMB) common stock to Stonegate’s shareholders — had been blessed by the U.S. Securities and Exchange Commission.

Under the terms of the agreement, Stonegate will merge into Centennial and shareholders of Stonegate will receive proceeds from the transaction of about $749.8 million, consisting of approximately $50 million in cash and $699.8 million of Home BancShares common stock. 

In addition, the holders of outstanding stock options of Stonegate will receive about $27.8 million in cash in cancellation of their options immediately before the merger, for a total transaction value of $777.6 million.

The deal is expected to close in late September and remains subject to Home BancShares and Stonegate shareholder approval. Meetings to approve the deal will take place in Conway and Pompano Beach on Sept. 25.

Tracy French, Centennial ‘s president and CEO, said a system conversion will take place in the first quarter of 2018. 

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