Seacoast Banking Corporation of Florida has announced the transformative acquisition of Villages Bancorporation, Inc. (VBI), the holding company of Citizens First Bank, with the deal adding significant value to Seacoast's financial metrics.
The acquisition brings in $4.1 billion in assets, $1.3 billion in loans, and $3.5 billion in low-cost deposits. This substantial addition provides Seacoast with a scalable banking platform, particularly in an affluent and growing 55+ residential community development in central Florida.
Following the acquisition, Seacoast expects approximately 24% earnings accretion, with a tangible book value earnback period of around 2.8 years. The internal rate of return is projected to exceed 25%, demonstrating the attractiveness of the deal for shareholders.
VBI has historically maintained a conservative and highly liquid balance sheet, with a 38% loan-to-deposit ratio and a 1.40% cost of deposits, providing a runway for additional high-margin growth.
The acquisition is expected to position Seacoast as the number one pure play Florida public bank, excluding Raymond James Financial, Inc., further solidifying its presence in the state's banking sector.
The pro forma metrics following the acquisition demonstrate Seacoast's commitment to maximizing shareholder value, with total assets reaching $21 billion, gross loans at $12 billion, and total deposits at $17 billion.
This strategically compelling acquisition is expected to drive high returns for shareholders through a conservatively modeled and low-execution risk transaction, with the potential for significant revenue synergies from delivering Seacoast's products and capabilities to VBI's customers.
Today the company's shares have moved 0.28% to a price of $24.98. For the full picture, make sure to review SEACOAST BANKING CORP OF FLORIDA's 8-K report.
