Eastern Florida-based regional banking name Seacoast Banking
(SBCF 32.61, +0.91, +2.87%) makes eight-year highs in reaction to the purchase
of First Green Bancorp, the holding company for First Green Bank.
First Green Bancorp is headquartered in Orlando and operates branches in the Orlando, Daytona Beach, and Fort Lauderdale area. First Green has deposits of about $629 mln and loans of $629 mln and will increase Seacoast’s deposits in Orlando by 49% to about $1.420 bln.
Under the terms of the merger agreement, First Green shareholders will receive 0.7324 shares of Seacoast common stock for each share of First Green common stock.
Based on Seacoast’s 10-day volume weighted average price of $31.40 as of June 8, 2018, the transaction is valued at about $132.6 mln, or $23.00/share (which includes cashing out the First Green options). The parties expect the deal to close early in the fourth quarter of 2018 following receipt of approvals from regulatory authorities, the approval of First Green shareholders, and the satisfaction of other customary closing conditions.
Seacoast expects the First Green acquisition to be over 10% accretive to earnings per share in 2019, excluding one-time transaction costs, and to have a tangible book value earn-back period of less than one year using the crossover method. The transaction is also expected to provide an internal rate of return of over 25%. Seacoast also anticipates more than 50% cost savings and sees no revenue synergies from the deal.
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