STUART, Fla., May 4, 2022 -- Seacoast Banking Corporation of Florida (“Seacoast”) (NASDAQ: SBCF), the holding company for Seacoast National Bank (“Seacoast Bank”), announced today that it has signed a definitive agreement to acquire Drummond Banking Company (“Drummond”), parent company of Drummond Community Bank based in Chiefland, FL. The proposed transaction will expand Seacoast’s presence into new and growing Florida markets including Ocala and Gainesville.
Drummond operates 18 branches across North Florida with deposits of approximately $932 million and loans of $543 million as of March 31, 2022. The proposed transaction is a natural continuation of Seacoast’s M&A strategy and adds a stable, high-quality franchise in growing markets.
“Drummond Community Bank has an outstanding reputation for exceptional service and strong financial performance, with a deep commitment to the communities it serves for the last 32 years. We see great opportunity in complementing its strengths with Seacoast’s innovation and breadth of offerings to grow our presence and expand our position in the state,” said Charles M. Shaffer, Seacoast's Chairman and CEO. “The transaction is expected to be significantly accretive to earnings in 2023 with modest dilution of tangible book value. We look forward to welcoming Drummond’s employees and customers to the Seacoast franchise.”
“During my many years at Drummond Community Bank, my goal has always been to do everything possible to provide the very best banking experience for our customers. Now, in partnership with Seacoast, we are positioned to further accelerate everything we’ve been doing to build a best-in-class banking experience supported by leading-edge technology and a great team of professionals,” said Luther Drummond, Chairman and President of Drummond and Chairman of Drummond Community Bank. “I’m so proud of what we have achieved at Drummond Community Bank and can’t wait to see all we will accomplish through this transaction.”
Following the merger, Luther Drummond and Gray Drummond will remain with Seacoast, serving as Market Executives. Scott Guthrie will also remain with Seacoast, serving as Market President.
The proposed transaction exemplifies Seacoast’s M&A focus on consolidation or entry into attractive markets, low concentration risks, and ease of execution that does not distract from its organic growth strategy. Seacoast expects the transaction to be 8.6% accretive to earnings per share in 2023, with modest dilution of tangible book value per share that will be earned back in 1.6 years.
Based on Seacoast’s closing price of $33.72 as of May 3, 2022, the transaction is valued at approximately $173.2 million.
Closing of the transaction is expected early in the fourth quarter of 2022, following receipt of approvals from regulatory authorities, the approval of Drummond shareholders, and the satisfaction of other customary closing conditions.
Piper Sandler & Co. served as financial advisor and Alston & Bird LLP served as legal counsel to Seacoast. Hovde Group, LLC served as financial advisor and Smith Mackinnon, PA served as legal counsel to Drummond.