Republic has agreed to an all-cash payment of approximately $32.3 million, which will be paid to Cornerstone Community Bank’s existing shareholders and stock option holders.
The transaction is contingent on regulatory approval and approval by Cornerstone’s shareholders. The deal is expected to close in the first quarter of 2016.
“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, chairman and CEO of Republic, said in a press release. “We believe Cornerstone, which is located in St. Petersburg, is a perfect fit for our culture and our future business plans in Florida. We are very excited about the long-term prospects this acquisition presents to our shareholders in one of the premier growth states in the United States.”
Currently, Republic has a total of 40 banking centers, with 32 of those in a dozen Kentucky communities; the remainder are in Florida (2), Indiana (3), Ohio (1) and Tennessee (2). The company holds $4 billion in assets.
As of September 2015, Cornerstone Community Bank had assets totaling $243 million.