Gulfstream Bancshares, Inc. to merge with CenterState Banks, Inc.
STUART, FL., July 30, 2013 – Gulfstream Bancshares, Inc. the parent company of
Gulfstream Business Bank announced today the signing of a definitive merger agreement
under which CenterState Banks, Inc. will acquire Gulfstream Bancshares. Upon completion
of the holding company merger, Gulfstream Business Bank will be merged with and into
CenterState Bank of Florida, NA.
"Gulfstream is excited to partner with such a strong community bank that shares the same
commitment to their associates, clients and local communities." said John Tranter,
Gulfstream’s Vice-Chairman, President and CEO. "This partnership is excellent for our clients
and our communities. CenterState Bank is a highly capitalized, five star bank that will allow
us to continue to operating our high touch business banking model."
Gulfstream, which was founded in 1999 and headquartered in Stuart, Florida, currently
operates 4 banking locations along Florida’s Treasure Coast which include Stuart, Port St.
Lucie, Jupiter, and Delray Beach. In 1999, Gulfstream was the first new commercial bank
established in Martin County in over 25 years. Over the past 14 years, the bank has evolved
into one of the premier business banks in the State with consistent top ten rankings in financial
performance and was named one of the most efficient banks in the country in 2011.
The merger agreement has been unanimously approved by the board of directors of each
company. The transaction is expected to close in the first quarter of 2014 and is subject to
customary conditions, including both regulatory approvals and hareholder approval by
Gulfstream shareholders. Subject to the terms of the merger agreement, Gulfstream
shareholders will receive 3.012 shares of CenterState’s common stock and $14.65 in cash for
each share of Gulfstream’s common stock, which equates to a deal value of $42.90 per share
based on CSFL’s 20 day volume weighted average closing price ended July 26, 2013 of $9.38.
In addition, if the volume weighted average closing sales price of CenterState common stock
during a specified time period prior to completion of the merger is greater than $10.38, then
the number of CenterState shares of common stock issued for each share of Gulfstream
common stock will be reduced by dividing $31.28 by such average closing sales price. Based
on CSFL’s 20 day volume weighted average closing price ended July 26, 2013 of $9.38, the
aggregate deal value is approximately $76.9 million.
“After 14 years of very solid financial performance during one of the most difficult economic
environments, we will be able to reward our shareholders with a significant premium on their
original investment”, said John Tranter.
As of June 30, 2013, Gulfstream reported assets of $572 million, loans of $369 million and
deposits of $486 million. Upon completion of the acquisition, the combined company will
have approximately $2.9 billion in assets, $1.8 billion in loans and $2.5 billion in deposits,
with a branch network of 59 banking locations. This combination represents a strategic and
financially attractive combination of both companies’ shareholders with significant earnings
After the completion of this transaction, CenterState will be one of the largest Florida- based
community banks. "Gulfstream’s management, Board of Directors, and entire team share our
culture and customer-focused approach, and we are pleased to welcome them, their customers
and their shareholders to CenterState," said Ernie Pinner, Chairman, President, and CEO of
CenterState Banks, Inc.
“Gulfstream Business Bank is a natural extension of our Florida and Treasure Coast franchise
into attractive areas with growth potential. We have admired Gulfstream’s business banking
niche philosophy with its high touch service that primarily serves business owners,
professionals and associations, ” said John Corbett, President & CEO of CenterState Bank of
Florida. "Gulfstream is consistently one of Florida’s highest performing banks and we are
excited to partner with such a high quality team.”
CenterState Banks, Inc.
CenterState Banks, Inc., headquartered in Davenport, Florida, is a bank holding company with
one nationally chartered bank: CenterState Bank of Florida. Presently, the Company operates
through 55 branches in eighteen counties throughout Florida, providing traditional deposit and
lending products and services to its commercial and retail customers. The Company, through
its Correspondent Banking Department, also provides correspondent banking services to over
600 Community banks located throughout the United States.
Gulfstream Business Bank
Gulfstream Business Bank, founded in 1999, is a $572 million dollar locally owned and
managed niche community bank. The Bank specializes in Business, Association and
Professional Banking, including commercial credit and specialty deposit products, residential
lending, a full line of retail and corporate cash management products and private banking
investment services. For more information, call (772) 426-8100 in Martin County, (772) 408-
5940 in St. Lucie County, (561) 354-4200 in North Palm Beach County or (561) 665-4200 in
South Palm Beach County, or visit the Bank's website at www.gsbb.com.