Stuart-based Seacoast Banking Corp. of Florida agreed to purchase Mount Dora, Fla.-based First Green Bancorp Inc. in a deal valued at about $132.6 million, or $23 per share, set to conclude early in the fourth quarter.
The deal value includes cashing out the First Green options and is based on Seacoast's 10-day volume-weighted average price of $31.40 as of June 8.
SNL calculates the deal value to be 175.0% of common equity and tangible common equity and 35.1x of earnings, on an aggregate basis. It is also 18.14% of assets and 21.04% of deposits. The premium to tangible book amounts to 12.72% of core deposits.
SNL valuations for bank and thrift targets in the Southeast region between June 11, 2017, and June 11, 2018, averaged 150.09% of book, 158.68% of tangible book and had a median of 26.25x last-12-months earnings, on an aggregate basis.
Shareholders of First Green will receive 0.7324 Seacoast common share for each First Green common share. First Green will merge into Seacoast, and First Green Bank into Seacoast National Bank, as part of the deal.
First Green has deposits of about $629 million and loans of $629 million, and the deal will increase Seacoast's deposits in Orlando by 49% to approximately $1.42 billion. Overall, Seacoast had about $5.9 billion in assets and $4.7 billion in deposits as of March 31.
First Green operates seven branches in the Orlando, Daytona and Fort Lauderdale markets and will add five branches in the Orlando MSA, increasing Seacoast's presence in that market, which it entered via a deal with The BANKshares in 2014 and expanded with the acquisition of Floridian Financial Group in March 2016 and BMO Harris' Orlando banking operations in June 2016.
Seacoast will expand in Florida by seven branches to be ranked No. 21 with a 0.89% share of approximately $563.65 billion in total market deposits.
This acquisition is expected to be more than 10% accretive to Seacoast's 2019 earnings per share, excluding one-time transaction costs, and it is anticipated to have a tangible book value earnback period of less than one year using the crossover method. The transaction also is expected to provide an internal rate of return of more than 25%.
For Seacoast, Raymond James & Associates Inc. served as financial adviser and Alston & Bird LLP served as legal counsel. Hovde Group served as financial adviser and Smith Mackinnon PA served as legal counsel to First Green.
The deal is subject to applicable regulatory and shareholder approvals.
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