Home BancShares is making a big move into the marine lending sector with a recent acquisition.
The Conway-based bank holding company has entered into an agreement to purchase LH-Finance, the marine lending division of People’s United Bank, N.A. As part of the agreement, Centennial Bank, which is owned by Home BancShares, will acquire $405 million of LH-Finance’s loan balances from People’s United.
“We have just returned from the Miami boat show, working with our Shore Premier Finance team,” John Allison, Home’s Chairman, CEO and President, said in a statement. “The excitement and enthusiasm from manufacturers and dealers is very contagious. Looks like perfect timing for HOMB.”
The loans that Centennial Bank acquires will be placed in the bank’s Shore Premier Finance Division, a $517 million marine lending division.
“The consolidation of LH-Finance into Shore Premier Finance is a natural evolution of two marine finance specialty teams that share common roots,” Shore Premier Finance President John Marshall said. “Further, this is an exciting opportunity to leverage scale and our unique business model to provide even greater service to our manufacturer, wholesale dealer, and retail customers.”
Home BancShares officials expect the deal to close in the first quarter of 2020 pending closing conditions.
In addition, Centennial also announced plans to open a new loan production office in Baltimore.