Enterprise acquires Seacoast Commerce Bank in $ 156 million deal



Corporate financial services Corp, the holding company of Enterprise Bank & Trust, and Seacoast Commerce Banc Holdings, the holding company of Seacoast Commerce Bank, today announced that EFSC, EB&T, SCBH and Seacoast have entered into a definitive merger agreement as part of the of a transaction valued at approximately $ 156 million. , or $ 15.80 per SCBH share, based on the closing price of the common shares of EFSC on August 19, 2020. On a pro forma consolidated basis, the combined company would have total consolidated assets of approximately $ 9.7 billion. dollars as of June 30, 2020.

The transaction is expected to have an accretive effect of approximately 4% on Enterprise earnings per share in 2021 (excluding the impact of one-off transaction costs) and more than 10% on its 2022 earnings per share, after taking into account synergies. of transactions estimated to be fully phased. . The tangible book value estimated by share dilution for EFSC is expected to be recovered in less than three years using the crossover method, including the CECL “Day Two” accounting treatment. The acquisition is expected to generate an internal rate of return greater than 25% for Enterprise.

Headquartered in San Diego, California, Seacoast had approximately $ 1.3 billion in total assets, $ 1.1 billion in loans and $ 1.0 billion in deposits as of June 30, 2020. Seacoast operates four bank offices full-service in San Diego, California and one in Las Vegas, Nevada. In addition, Seacoast has 20 loan production offices and six depot production offices across the country. As of July 31, 2020, Seacoast was ranked the 9th largest lender in the country for small business administration and has experienced strong revenue and profit growth in recent years. Over the past ten years, Seacoast has funded over $ 2 billion in SBA loans while recording only nominal credit losses over the same period. As of June 30, 2020, approximately 52%, or $ 569 million, of Seacoast’s $ 1.1 billion loan portfolio was 100% guaranteed by the U.S. government.

“We are delighted to announce this transaction and believe the combination of the two organizations is a perfect fit for our business model,” said Jim Lally, President and CEO of EFSC. “Rick and his team have built a hugely successful SBA platform that will complement our commercial and specialty lending verticals, with the SBA division continuing to be led by David Bartram and Rick Visser. In addition, the depth of Seacoast



Leave A Reply