Centennial Bank, a wholly-owned subsidiary of Home BancShares, Inc. (NASDAQ GS: HOMB) announced today it has acquired the banking operations of Gulf State Community Bank (“Gulf State”) headquartered in Carrabelle, Florida, through loss-sharing agreements with the Federal Deposit Insurance Corporation (“FDIC”).
Depositors of Gulf State will automatically become depositors of Centennial Bank, and their deposits will continue to be insured by the FDIC up to $250,000. Customers may access their accounts through automated teller machine transactions, checks, online banking and debit card transactions. Gulf State locations normally open on Saturday will open under regular business hours on Saturday, November 20, 2010, as branches of Centennial Bank. All remaining locations will open under regular business hours on Monday, November 22, 2010, as branches of Centennial Bank. Additionally, checks drawn on Gulf State will continue to be processed, and loan customers should continue to make their payments as usual.
During the transition period, Gulf State customer accounts will be transitioned to Centennial Bank accounts with customers ultimately enjoying the benefits of Centennial Bank’s convenient locations, plus an extensive selection of products and services. Customers may continue banking as usual and feel confident their deposits are secure, now backed by one of the country's strongest and safest financial institutions. Employees and vendors should continue to operate business as usual.
“We continue to execute on our very successful acquisition strategy in Florida and are happy to report yet another strategic in-market acquisition which is additive to the Coastal Community Bank, Bayside Savings Bank and Wakulla Bank transactions in the Florida Panhandle. This core deposit franchise will further enhance our strong presence in Wakulla and Franklin counties. Gulf State has been focused on the customers and the communities it serves for four decades, and this will continue under the Centennial Bank umbrella. We look forward to serving the needs of the Franklin County communities in addition to Wakulla”, said Randy Sims, Chief Executive Officer of Home BancShares and Centennial Bank.
“We are very excited to continue building our Panhandle franchise. The regional economy continues to grow, and the unemployment rate remains well below the Florida state average in the Panhandle area. We again anticipate a smooth and seamless transition, similar to our experiences with our previously announced FDIC-assisted acquisitions. We cordially welcome Gulf State customers to the Centennial Bank family. Our local Centennial Bank team along with management from Home BancShares has been deployed to assist in the weekend resolution process.”
The acquisition is expected to provide Centennial Bank:
• Assets of approximately $112 million,
• Loans of approximately $74 million (before loan discounts and FDIC receivables),
• Investment securities of approximately $11 million,
• Deposits of approximately $100 million.
Upon completion of the acquisition, the Company will continue to remain well in excess of "well capitalized" by regulatory standards, with no additional capital required to support this transaction.
Additional information regarding the acquisition is provided in a supplemental presentation available on the Company's website at www.homebancshares.com, under the "Investor Relations" section.