Home BancShares Inc., parent company of Centennial Bank, announced late Thursday (April 17) plans to acquire Florida Traditions Bank. The two institutions have entered into a non-binding letter of intent that will merge the Florida bank into Centennial.
Traditions’ shareholders will receive approximately $43 million of Home common stock. Although the parties have entered into a letter of intent, there is no guarantee the parties will enter into a definitive agreement.
Traditions currently operates eight banking locations in Central Florida, including its main office in Dade City, Florida. As of Mar. 31, Traditions had approximately $312 million in total assets, $249 million in loans, and $279 million in deposits.
“We continue to execute on our very successful acquisition strategy in Florida and are happy to report another pending strategic in-market acquisition,” said John Allison, chairman. “We look forward to continuing to serve the needs of these communities.”
The acquisition is expected to close late in the third quarter or early in the fourth quarter of 2014 and is subject to execution of a definitive agreement, shareholder approval, regulatory approvals, and other customary conditions.
“Traditions Bank is excited to join the Centennial Bank family,” said Bud Stalnaker, CEO of Traditions. “Our footprint along the I-4 corridor fits nicely with what Centennial has built over the past several years. Centennial is an extremely well run institution and we are looking forward to helping them expand their presence in Central Florida.”
Additional information regarding the potential acquisition is provided in a supplemental presentation available on the company’s website under the “Investor Relations” section.