Seacoast Banking Corp. of Florida in Stuart has agreed to buy First Green Bancorp in Orlando, Fla.
The $5.9 billion-asset Seacoast said in a press release late Monday that it will pay $132.6 million in stock for the $731 million-asset First Green. The deal is expected to close in the fourth quarter.
First Green, formed in 2009, has seven branches, $629 million in deposits and $629 million in loans. Seacoast said its deposits in Orlando will increase by 49%, to $1.4 billion.
“This acquisition brings Seacoast a highly complementary banking institution in a transaction with excellent economics, strengthening our position in Orlando, which is already at scale, and our overall franchise in the state,” Dennis Hudson III, Seacoast’s chairman and CEO, said in the release.
“First Green builds upon our three previous Orlando acquisitions and subsequent organic growth, adding five branches and increased assets, deposits and distribution to our strong position in Florida’s third largest MSA,” Hudson added.
Seacoast said it expects 10% earnings accretion from the deal in 2019 and 2020, excluding merger-related costs. It should take less than a year for Seacoast to earn back any dilution to its tangible book value.
Seacoast said it expects to cut about half of First Green's operating costs. Six of First Green's seven branches are within three miles of a Seacoast branch.
Raymond James and Alston & Bird advised Seacoast. Hovde Group and Smith Mackinnon advised First Green.