Republic Bancorp in Louisville, Ky., has agreed to buy Cornerstone Bancorp in St. Petersburg, Fla.
The $4 billion-asset Republic said in a press release Wednesday that it will pay about $32.3 million in cash for the $243 million-asset Cornerstone. The deal is expected to close in the first quarter.
“Republic has long had a desire to expand our presence in the Tampa-St. Petersburg-Clearwater area by acquiring another institution that embodies our values as a community-based financial institution with a focus on strong credit quality,” Steve Trager, Republic’s chairman and chief executive, said in the release. “We believe Cornerstone … is a perfect fit for our culture and our future business plans in Florida.”
Cornerstone has $183 million in loans and $206 million in deposits. Republic will have six branches in the Tampa Bay area after completing the acquisition.
Republic said it expects the deal to be accretive to its class A shares in the first twelve months.
David Feaster, Cornerstone’s president and chief executive, will join Republic as a market president.
The completion of the transaction is subject to regulatory approval and approval by Cornerstone’s shareholders with an anticipated closing date during the first quarter of 2016.
Republic, which spent recent years moving on from its once-lucrative business of tax-refund lending, is the latest out-of-state bank to move into Florida. Valley National in Wayne, N.J., bought 1st United Bank in Boca Raton earlier this year; it also has an agreement to buy CNLBancshares in Orlando.