The South Florida Chapter of the Association for Corporate Growth (ACG-South Florida) announced today a winner of the “Deal of the Year”. Stonegate Bank was so-named for its acquisition of Regent Bancorp in September 2016. The award will be presented on June 15 along with other category awards to South Florida’s leading businesses. The categories are Outstanding Growth Company of the Year, Emerging Growth Company of the Year and Transaction of the Year (two winners announced – Stonegate Bank and Sun Capital Partners). A cocktail reception, awards dinner and post event reception will be held at the Westin Fort Lauderdale, Florida, on Cypress Creek Rd. on June 15th beginning at 5:30pm. ACG South Florida offers a wide range of sponsorship and advertising opportunities to businesses in Miami-Dade, Broward and Palm Beach Counties, that wish to join us in honoring some of the best in South Florida business.
Stonegate Bank (Nasdaq:SGBK)
Stonegate Bank (“Stonegate”) is a Florida-chartered commercial bank headquartered in Pompano Beach, Florida. Stonegate incorporated on January 13, 2005 and commenced operations on March 7, 2005. As of December 31, 2016, Stonegate had grown to approximately $2.9 billion in assets, including approximately $2.3 billion in net loans and approximately $2.4 billion in deposits.
Stonegate is a full-service commercial bank, providing a wide range of business and consumer financial services in its target marketplace, which is comprised primarily of Broward, Charlotte, Collier, Hillsborough, Lee, Miami-Dade, Palm Beach and Sarasota Counties in Florida. Banking offices increased to 25 with the Regent Bancorp, Inc. and Insignia Bank acquisitions. Stonegate has grown significantly through the acquisition of failed banks and through strategic acquisitions. Beginning in 2009, the bank entered into four purchase and assumption agreements with the FDIC, all without loss sharing agreements, to assume all of the deposits and purchase certain assets of failed institutions. Stonegate also acquired a number of banks through strategic acquisitions. In 2011 100% of the outstanding shares of Southwest Capital Bank, N.A was acquitted and on January 15, 2014, the acquisition of Florida Shores Bancorp, Inc. and its two majority-owned subsidiary banks, Florida Shores Bank – Southeast and Florida Shores Bank –Southwest closed. Shortly thereafter Stonegate relocated its headquarters from Fort Lauderdale to Pompano Beach, Florida.
Recent Developments
· Sale to Home BancShares, Inc.
On March 27, 2017, Stonegate Bank, a Florida-chartered commercial bank (“Stonegate”)
entered into an Agreement and Plan of Merger (the “Agreement”) with Home BancShares, Inc.
(“Home”) and its wholly-owned bank subsidiary, Centennial Bank, an Arkansas state bank
(“Centennial”), under which Home and Centennial will acquire Stonegate. The Agreement
provides that Stonegate will merge with and into Centennial (the “Merger”). Under the terms of the Agreement, shareholders of Stonegate will receive, in the aggregate, proceeds from the transaction of approximately $749.8 million, consisting of $50.0 million in cash and $699.8 million of Home common stock. In addition, the holders of outstanding stock options of Stonegate will receive approximately $28.6 million in cash in connection with the cancellation of their options immediately before the Merger, for a total transaction value of approximately $778.4 million. The number of shares of Home common stock to be issued to Stonegate shareholders will be determined based on the volume-weighted average closing price per share of Home common stock for the 20 consecutive trading days ending on the third trading day prior to the closing date (the “Average Closing Price”). In addition, if the Average Closing Price of Home common stock as of the closing date is equal to $35.19 or greater or $22.52 or less, then the Average Closing Price will be fixed at $35.19 or $22.52, respectively (subject in each case to adjustment in the event of a stock dividend, reclassification, recapitalization, split-up, combination, exchange of shares or similar transaction).The Merger is expected to close late in the fourth quarter of 2017, and is subject to the approval of the shareholders of Home and Stonegate, regulatory approvals, and other customary conditions set forth in the Agreement.
· Insignia Bank Acquisition
On March 7, 2017, Stonegate Bank (“Stonegate”) completed its acquisition of Insignia
Bank, a Florida-chartered commercial bank (“Insignia”), pursuant to the Agreement and Plan of
Merger (the “Merger Agreement”), dated August 25, 2016, by and between Stonegate and
Insignia. In accordance with the Merger Agreement, Stonegate acquired Insignia through the
merger of Insignia with and into Stonegate (the “Merger”). Stonegate was the surviving bank
following the Merger. The Merger became effective on March 7, 2017.
Regent Bank Acquisition – The Deal
On September 15, 2016, Stonegate Bank completed the acquisition of Regent Bancorp, Inc. and its wholly owned subsidiary, Regent Bank, a Florida-chartered commercial bank (“Regent”). Regent was headquartered in Davie, Florida and had four other locations in Broward and Palm Beach Counties, Florida. As with many community banks headquartered in Southeast Florida, Regent’s focus was relationship banking to professionals, small businesses and consumers. This acquisition significantly expanded Stonegate’ s deposit market share in Broward County and deposits in Southeast Florida increased to over $1.6 billion. At the time of the merger, and before any fair value adjustments, Regent had approximately $346.0 million in assets, including approximately $268.3 million in gross loans, and approximately $295.4 million in deposits. In connection with this acquisition, Stonegate’ s expenses in 2016 included the termination of the core operating system contract, data conversion, closing of two offices, professional fees and payments to employees, which totaled approximately $2.74 million.
Information about the ACG-South Florida Awards Banquet, including purchases of sponsorships, advertising and tickets, can be obtained from President Ari Roloff (954-732-1291), Chapter Executive Lisa Tineo (305-343-2676; ltineo@acg.org) and Awards Committee Chairman Thomas Hicks (954-415-639; renparlc@gate.net) and from the ACG-South Florida website http://www.acg.org/southflorida/. ACG member tickets are $135; for non-members $175.
Founded in 1954, the Association for Corporate Growth Inc. (“ACG”) is the premier global association for professionals involved in corporate growth, corporate development, and mergers and acquisitions. ACG has over 14,500 members from corporations, private equity, finance and professional service firms representing Fortune 500, Fortune 1000, FTSE 100 and middle-market companies through chapters in North America, Europe and Asia. These leaders are focused on building value. ACG serves 90,000 investors, executives, lenders and advisers to growing middle-market companies.
