CenterState Banks (CSFL) in Davenport, Fla., has agreed to buy First Southern Bancorp (FSOF) in Boca Raton, Fla.
CenterState will pay $189.5 million, split evenly between in cash and stock, for the $1.1 billion-asset First Southern. The deal values First Southern at 96.2% of tangible book value. CenterState expects to complete the acquisition in the third quarter.
"First Southern Bank is a complementary fit into our company as we have a significant presence in Jacksonville and Orlando," Ernie Pinner, CenterState's chairman, president and chief executive, said in a press release. "First Southern also provides a natural further extension of our Gulfstream Business Bank acquisition into the attractive markets of both Palm Beach and Broward counties."
The $2.4 billion-asset CenterState said it will cut about half of First Southern's costs, including the closure of four overlapping branches, achieving $16 million in pretax savings next year. CenterState expects to incur about $5 million in merger-related expenses.
The acquisition is expected to be immediately accretive to CenterState's tangible book value and should reach double-digit accretion by 2015.
First Southern has 17 branches, $883 million in deposits and $635 million in loans. The company had acquired a pair of failed Florida banks Haven Trust in Ponte Vedra Beach in 2010 and First Commercial in Orlando in 2011 and CenterState said it will inherit loss-share agreements tied to those deals.