Seacoast Banking (SBCF) to Acquire Legacy Bank of Florida
Seacoast Banking Corporation of Florida SBCF has inked a deal to acquire the Legacy Bank of Florida, with an aim to further solidify its position in the Broward and Palm Beach counties in Florida. The all-stock deal, expected to close in the third quarter of 2021, is subject to regulatory approval, consent of Legacy Bank shareholders and customary closing conditions.
Charles M. Shaffer, Seacoast Banking's president and CEO, said “Legacy Bank of Florida is a customer-focused franchise with an outstanding reputation for service excellence and deep customer relationships in this important market. We see great opportunity in complementing its strengths with Seacoast’s innovation and breadth of offerings to grow our presence and expand our position in South Florida.”
Per Dennis G. Bedley, chairman and CEO of Legacy Bank, “Since 2006, Legacy Bank of Florida has been committed to white glove service, local decision-making, and competitive products. We are delighted to partner with Seacoast, which shares our values and has been serving Florida consumers and businesses for more than 90 years,”
Transaction Details
Based on Seacoast Banking’s closing price of $35.53 as of Mar 23, the transaction is valued at $102.2 million. Per the terms of the deal, shareholders of Legacy Bank will get 0.17 of share of Seacoast Banking common stock for each share of Legacy Bank. Thus, following the closure, Legacy Bank shareholders will own 4.6% of Seacoast Banking.
As of Dec 31, 2020, Legacy Bank operated five branches across the two counties with deposits of roughly $432 million and loans of $482 million. After the conclusion of the deal, it will be merged with and into Seacoast Bank, a wholly-owned banking subsidiary of Seacoast Banking.
Following the completion of the deal, Bedley will join Seacoast Banking and serve as Broward County Market President.
Financial Benefits
Seacoast Banking projects the acquisition to be 2% accretive to earnings (excluding the one-time transaction costs) in 2021and 6% in 2022. Further, it will lead to cost savings of almost 45%.
Additionally the transaction will boost Seacoast’s deposits in the Miami-Fort Lauderdale-Pompano Beach MSA by 41% to $1.4 billion.
Conclusion
Seacoast Banking's management believes the deal will likely complement its previous buyouts in South Florida, and help it compete in growing and dynamic markets. Over the years, the company has expanded its footprints in the region through the acquisitions of First Bank of the Palm Beaches in 2020, First Green Bancorp in 2018, Palm Beach Community Bank in 2017 and Grand Bankshares in 2015.
Over the past six months, shares of Seacoast Banking have rallied 19.1% underperforming the industry’s gain of 24.7%.
Currently, Seacoast Banking carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Banks Undertaking Similar Moves
Canada based Toronto-Dominion Bank TD has signed an agreement with Headlands Tech Holdings, LLC to buy Headlands Tech Global Markets, LLC. The deal, expected to close in mid-2021, is subject to regulatory approvals and other closing conditions.
Banc of California, Inc. BANC has announced a merger deal with Costa Mesa, CA-based Pacific Mercantile Bancorp. The all-stock transaction, likely to close in the third quarter of 2021, is valued at approximately $235 million.
Business First Bancshares, Inc. BFST, the holding company of b1BANK, has inked a deal to acquire Smith Shellnut Wilson, LLC. Consummation of the deal is likely to occur in the coming weeks.
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