Seacoast Banking to acquire Villages Bancorporation

STUART, Fla. - Seacoast Banking Corporation of Florida (NASDAQ: SBCF), the parent company of Seacoast National Bank, has announced an agreement to acquire Villages Bancorporation, Inc. (VBI), the holding company for Citizens First Bank located in The Villages, Florida. Currently valued at $2.1 billion in market capitalization and trading at a P/E ratio of 16.6, Seacoast appears undervalued according to InvestingPro analysis. This move is part of Seacoast’s ongoing merger and acquisition strategy, aiming to expand its presence in high-growth markets.

VBI, the 11th largest bank in Florida, reported assets of $4.1 billion, with deposits totaling approximately $3.5 billion and loans around $1.3 billion as of March 31, 2025. The bank operates 19 branches within The Villages, a rapidly expanding planned community noted for its high occupancy rates and substantial commercial space. Seacoast’s financial health metrics from InvestingPro show a stable debt-to-equity ratio of 0.35 and consistent dividend growth over the past four years, with a current yield of 2.89%.

Charles M. Shaffer, Chairman and CEO of Seacoast, highlighted the strategic value of the acquisition, citing VBI’s strong deposit base and the potential for increased profitability and earnings for shareholders. He emphasized the shared commitment to service quality and growth potential in The Villages community.

Jay Bartholomew, CEO of VBI, expressed enthusiasm for the partnership, which is expected to enhance the banking experience for customers through a combination of VBI’s community focus and Seacoast’s innovative offerings.

Seacoast anticipates the transaction to be 22% accretive to earnings per share in 2026, with tangible book value dilution earned back in less than three years. VBI shareholders will have the option to receive $1,000.00 in cash, 38.5000 shares of Seacoast common stock, or a combination thereof for each share of VBI common stock, subject to proration. The total value of the merger consideration is approximately $710.8 million, based on Seacoast’s closing price as of May 28, 2025.

The acquisition is expected to close in the fourth quarter of 2025, pending regulatory approvals, VBI shareholder approval, and other customary closing conditions. Financial advisors and legal counsel have been engaged by both entities to facilitate the transaction.

This strategic acquisition is set to bolster Seacoast’s assets to $21 billion and deposits to $17 billion, reinforcing its position as a significant community bank in Florida. The information reported is based on a press release statement. Looking ahead, analysts have revised their earnings estimates upward, with EPS forecast at $1.71 for 2025. For deeper insights into Seacoast’s financials and growth prospects, including exclusive ProTips and comprehensive valuation metrics, investors can access the detailed Pro Research Report available on InvestingPro.

In other recent news, Seacoast Banking Corporation of Florida reported its first-quarter 2025 earnings, missing earnings per share (EPS) estimates with an EPS of $0.38 against the anticipated $0.40. However, the company’s revenue surpassed expectations, reaching $140.7 million compared to a projected $138.41 million. Seacoast Banking has also received regulatory approvals for its acquisition of Heartland Bancshares, with the transaction expected to finalize in July 2025. This acquisition is part of Seacoast’s expansion strategy and is anticipated to enhance its presence in the region.

At the 2025 Annual Meeting of Shareholders, Seacoast Banking announced the election of four Class II directors and the approval of proposals to increase authorized shares and amend the 2021 Incentive Plan. Shareholders also ratified the appointment of Crowe LLP as independent auditors for the fiscal year ending December 31, 2025. Analyst Russell Guthner from Stephens adjusted the price target for Seacoast Banking to $26.00 from $28.00, maintaining an Equal Weight rating on the stock. The analyst noted that the acquisition of Heartland Bancshares is expected to serve as a growth catalyst.

Seacoast Banking demonstrated a 6% annualized loan growth and an 11% increase in deposits during the first quarter of 2025. The bank’s net interest income rose by 2% quarter-over-quarter, with a net interest margin improvement of nine basis points to 3.48%. These developments reflect Seacoast’s robust revenue generation capabilities despite slightly lower-than-expected earnings per share.

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