Seacoast expanding in western Florida with Fourth Street acquisition

Register now

Seacoast Banking Corp. of Florida in Stuart has agreed to buy Fourth Street Banking Co. in St. Petersburg, Fla.

The $7.1 billion-asset company said in a press release Thursday that it will pay $63.6 million in stock for the parent of the $306 million-asset Freedom Bank. The deal is expected to close in the second quarter.

Freedom Bank has two branches, $276 million in loans and $249 million in deposits. Seacoast, which entered the Tampa Bay market in 2017 with two acquisitions, said it will have $679 million in deposits in the area when the deal closes.

“Seacoast has found a great opportunity to partner with Freedom Bank, strengthening our position in the attractive Tampa-St. Petersburg market,” Dennis Hudson III, Seacoast's chairman and CEO, said in the release. “This is an exceptional addition to our two previous acquisitions in the state’s second-largest MSA.”

Cathy Swanson, Freedom Bank’s CEO, will join Seacoast as its market president for Pinellas County.

Seacoast said it expects the acquisition to be more than 1.5% accretive to its 2020 earnings per share, excluding merger-related costs. It should take less than two years for Seacoast to earn back any expected dilution to its tangible book value.

Piper Sandler and Alston & Bird advised Seacoast. Hovde Group and Smith Mackinnon advised Fourth Street.

For reprint and licensing requests for this article, click here.
Community banking M&A Capital Florida
MORE FROM AMERICAN BANKER