Stonegate Bank to be acquired by Home BancShares

South Florida-based Stonegate Bank will be acquired by Home BancShares in a cash-and-stock deal valued at about $778.4 million, according to an agreement signed by the two entities.

Under the terms of the agreement announced Monday, Stonegate will merge into Centennial Bank, which is owned by Conway, Ark.-based Home BancShares. Stonegate, which is headquartered in Pompano Beach, operates 25 branch locations in Florida, many of them in Broward County. As of the end of last year, Stonegate had $3.1 billion in total assets, $2.5 billion in total loans, and $2.7 billion in deposits.

If the acquisition goes through, the combined company will have about $13.5 billion in assets.

“Home and Stonegate are two very high performing franchises with a similar operating philosophy and customer focus,” said Dave Seleski, Stonegate’s CEO, in a statement. “This is a great combination for our shareholders, customers and communities.”

Shareholders of Stonegate will receive proceeds from the transaction consisting of about $50 million in cash and $699.8 million of Home common stock. In addition, the holders of outstanding stock options of Stonegate will receive $28.6 million in cash in cancellation of their options immediately before the merger. Stonegate trades on the Nasdaq.

The acquisition is expected to close in the fourth quarter of 2017 and is subject to Home and Stonegate shareholder approval, regulatory approval, and other conditions.

Stonegate opened its doors in 2005 has expanded rapidly across Florida. The company made global news when it agreed to provide banking services to Cuba in 2015. Earlier this month, Stonegate closed a $36.5 million acquisition of Sarasota-based Insignia Bank, its 10th acquistion since 2009.