CenterState Banks in Davenport, Fla., has agreed to buy Gateway Financial Holdings of Florida in Daytona Beach.

The $5 billion-asset CenterState said in a press release Wednesday that it will pay $132 million, or $19.06 a share, for the $880 million-asset parent of Gateway Bank of Florida, Gateway Bank of Southwest Florida and Gateway Bank of Central Florida. The cash-and-stock deal, which is expected to close in the second quarter, values Gateway at 148% of its tangible book value.

Gateway, which has been one of CenterState's correspondent bank clients for seven years, has nine branches, $543 million in loans and $722 million in deposits.

This transaction is expected to result in mid-single-digit earnings per share accretion. CenterState said it would take about 1.5 years to earn back dilution to its tangible book value.

CenterState said it expects to incur $5 million in merger-related costs, and Gateway will have $3.6 million of its own expenses. CenterState also plans to cut Gateway's expenses by 35%.

Keefe, Bruyette & Woods and Smith Mackinnon advised CenterState. Hovde Group and Gunster advised Gateway Financial.

CenterState agreed in October to buy Platinum Bank Holding Company in Brandon, Fla., in a $83.9 million cash-and-stock deal.

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