DAVENPORT, FL., January 29, 2014 – CenterState Banks, Inc. (NASDAQ – Â GS: CSFL) announced today theÂ signing of a definitive merger agreement under which CenterState will acquire First Southern Bancorp,Â Inc. the parent company of First Southern Bank. Upon completion of the holding company merger, FirstÂ Southern Bank will be merged with and into CenterState Bank of Florida, NA.
First Southern Bank, which is headquartered in Boca Raton, Florida, currently operates 17 bankingÂ locations in the Orlando, Jacksonville, and West Palm Beach-Fort Lauderdale MSAs. As of December 31,Â 2013, First Southern reported assets of $1.1 billion, loans of $635 million and deposits of $883 million.Â “First Southern Bank is a complementary fit into our company as we have a significant presence inÂ Jacksonville and Orlando”, said Ernie Pinner, Chairman, President, & CEO of CenterState Banks, Inc.Â â€œFirst Southern also provides a natural further extension of our Gulfstream Business Bank acquisitionÂ into the attractive markets of both Palm Beach and Broward counties.â€
Upon completion of the acquisition, the combined company will have approximately $4.0 billion inÂ assets, $2.5 billion in loans and $3.4 billion in deposits. This transaction represents a strategic andÂ financially attractive combination of both companiesâ€™ shareholders with day?one tangible book valueÂ accretion and significant earnings per share accretion. After the completion of this transaction,Â CenterState will be one of the largest Florida- based community banks.Â â€œFirst Southern Bank leverages our existing in-market leadership and infrastructure in these strategicÂ Florida markets,â€ said John Corbett, President & CEO of CenterState Bank of Florida. “We are pleased toÂ welcome First Southernâ€™s customers and employees to CenterState. â€œ
The merger agreement has been unanimously approved by the boards of directors of each company.The transaction is expected to close in the third quarter of 2014 and is subject to customary conditions,Â including both regulatory approvals and shareholder approval by both CenterState and First SouthernÂ shareholders. Subject to the terms of the merger agreement, First Southern shareholders will receiveÂ .30 shares of CenterStateâ€™s common stock and $3.00 in cash for each share of First Southernâ€™s commonÂ stock, which equates to a deal value of $6.00 per share based on CSFLâ€™s closing stock price on JanuaryÂ 29, 2014 of $10.00. Based on CSFLâ€™s closing stock price on January 29, 2014 of $10.00, the aggregateÂ deal value is $189.5 million.