Seacoast Banking Corporation of Florida (SBCF) acquires Apollo Bancshares


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Seacoast Banking Corporation of Florida (NASDAQ: SBCF), the holding company of Seacoast National Bank (“Seacoast Bank”), today announced that it has entered into a definitive agreement to acquire Apollo Bancshares, Inc. (“ Apollo”), parent company of Apollo Bank based in Miami, Florida. The proposed transaction will expand Seacoast’s presence in Miami-Dade County, which is part of the Miami-Fort Lauderdale-Pompano Beach Metropolitan Statistical Area, Florida’s largest MSA and the 8th largest in the nation.

Apollo Bank operates five branches in Miami-Dade County with deposits of approximately $928 million and loans of $665 million as of December 31, 2021. The proposed transaction, a natural continuation of the mergers and acquisitions strategy of Seacoast, adds a premium banking franchise in Miami. and a management team with deep connections and experience in this financially attractive market.

“Apollo Bank is a customer-focused franchise with an exceptional reputation for service excellence and close customer relationships in this important market. We see a great opportunity to grow our presence and expand our position in South Florida by complementing Apollo’s strengths with Seacoast’s innovation and breadth of offerings,” said Charles M. Shaffer, CEO of Seacoast.

“The transaction will build on our previous acquisitions in South Florida and our organic growth, adding scale to one of the most dynamic and fastest growing markets in the United States, and we we expect it to be significantly accretive to earnings in 2023, with modest dilution to tangible book value.We look forward to welcoming Apollo Bank employees and customers to the Seacoast franchise later this year. added Shaffer.

Eddy Arriola, President and CEO of Apollo and Apollo Bank, said, “Since 2010, Apollo Bank has been committed to powering South Florida businesses with relationship-focused services and competitive products. We are delighted to partner with Seacoast Bank, which shares our values ​​and has served Florida consumers and businesses for nearly a century.

After the merger, Arriola will remain with Seacoast, serving as Miami-Dade’s market manager.

The proposed transaction illustrates Seacoast’s focus on M&A over consolidation or entry into attractive growth markets, low concentration risks and ease of execution that does not distract from its organic strategy. Seacoast’s presence in South Florida has grown in recent years, including through its acquisition of Legacy Bank of Florida in 2021. Seacoast expects the transaction to be 8.0% earnings accretive per share in 2023, with a slight dilution of the tangible book value per share which will be recovered in 2.25 years. Seacoast deposits in the Miami-Fort Lauderdale-Pompano Beach MSA will increase 45% to approximately $2.7 billion.

Apollo Bancshares, Inc.’s subsidiary bank, Apollo Bank, is owned 84.66% by Apollo Bancshares and 15.34% by a group of minority shareholders. Under the terms of the merger agreement, Apollo shareholders should receive 1.006529 shares of Seacoast common stock for each share of Apollo common stock, and minority shareholders of Apollo Bank should receive 1.195651 shares of Seacoast common stock for each share of Apollo Bank common stock. The exchange ratio for the transaction is fixed, which means that the value of the transaction will fluctuate due to changes in Seacoast’s stock price. Based on Seacoast’s closing price of $35.48 as of March 28, 2022, the Apollo transaction is valued at approximately $168.3 million.

The transaction is expected to close in early Q4 2022, following receipt of regulatory approvals, Apollo and Apollo Bank shareholder approvals and satisfaction of other customary closing conditions.

Piper Sandler & Co. served as financial advisor and Alston & Bird LLP served as legal advisor to Seacoast. Keefe Bruyette & Woods, A Stifel company served as financial advisor and Fenimore, Kay, Harrison LLP served as legal advisor to Apollo and Apollo Bank.

Investor conference call

Seacoast will host a conference call on Wednesday, March 30, 2022 at 10:00 a.m. (Eastern Time) to discuss the acquisition. Investors can call (toll-free) by dialing (800) 774-6070 access code: 7223 581#. The slides will be used during the conference call and can be viewed on the Seacoast website at SeacoastBanking.com by selecting “Presentations” under “News/Events”. Additionally, a recording of the call will be made available to individuals shortly after the conference call, and can be viewed via a link at SeacoastBanking.com under “Company Information”, using access code: 50288489. Registration will be available for one year.

Luisa D. Fuller