CenterState Bank in Winter Haven, Fla., has agreed to buy National Commerce in Birmingham, Ala.
The $12 billion-asset CenterState said in a press release Monday that it will pay $850 million in stock for the $4.1 billion-asset National Commerce. The deal, which is expected to close in the second quarter, priced National Commerce at 199% of its tangible book value.
By value, it is the ninth-biggest bank acquisition deal announced this year.
National Commerce has 37 branches, $3.2 billion in loans and $3.3 billion in deposits.
Richard Murray IV, National Commerce’s chairman and CEO, will become CEO of CenterState’s bank. William Matthews V, National Commerce’s president and chief financial officer, will become CenterState’s CFO.
Three National Commerce directors will join CenterState’s board.
“We have enjoyed a 19-year business relationship with Richard, Will and other members of the National Commerce team that confirms our cultural alignment,” John Corbett, CenterState’s president and CEO, said in the release. “This partnership not only strengthens our management team, but it also deepens our franchise in our core markets of Orlando, Tampa, Jacksonville, and Atlanta.”
CenterState said it expects the transaction to create mid-single-digit earnings per share accretion on a fully phased-in basis. The company said it should take about two years to earn back any dilution to its tangible book value.
National Commerce was created in the wake of the financial crisis when the former management team of Alabama National Bank bought and rebranded Red Mountain Bank. The company held its initial public offering in 2015 and began to buy multiple banks in Florida and Georgia.
Raymond James and Nelson Mullins Riley and Scarborough advised CenterState. Keefe, Bruyette & Woods and Maynard Cooper & Gale advised National Commerce.
