The holding company of Plant City-based Sunshine State Federal Savings has entered an agreement to purchase Community Southern Bank.
Bank Sunshine Bancorp Inc. will purchase the company for about $30.8 million in an all cash transaction. The combination will create a franchise with approximately $451.4 million in assets and nine banking facilities in the Greater Tampa Bay Market.
The transaction, approved by the board of directors from both companies, utilizes Sunshine’s excess capital to expand Sunshine Bank into a market along the growing I-4 corridor.
The transaction will add approximately $246 million dollars in assets, $165 million in loans and $186 million in deposits to Sunshine Bank.
“We are delighted to add Community Southern to our banking family,” Andrew S. Samuel, president and CEO of Sunshine, said. “This transaction is consistent with our strategy for selective acquisitive growth into attractive contiguous markets.”
One current board member from Community Southern’s board will join the Sunshine board.
“In Sunshine Bank, we are pleased to have found a community banking partner that shares similar values and has high customer service standards and commitment to the community,” John Langford, chairman of the board of Community Southern, said.
Management expects to capitalize on cost savings through the reduction of administrative and operational redundancies.
The anticipated earn back for the book value dilution is approximately three years.
The transaction will close in the third quarter of 2015 pending regulatory approval, approval from the shareholders of Community Southern and other customary closing conditions.
